Characterization of rapidly solidified Al-8Fe-4Ni-1Mo alloy shows that subsequent extrusion generates a non-uniform microstructure which may be attributed to the non-uniform deformation during extrusion. The mechanical properties were found to be closely related to the extrusion ratio. It is believed that the degradation of the microstructure is due to the severe deformation during processing, and hence a compromise is needed between optimum powder bonding and the lowest extent of deformation in the consolidation process.