Aluminum-based alloys containing quasicrystalline particles of 50 - 600 nm in diameter as a reinforcing phase were produced in the form of powder or ribbons by water atomization or melt spinning techniques, respectively. Rods were compacted from the powders and some ribbons, and their mechanical properties were determined. Microstructures and phases in powders, ribbons and compacted rods were investigated using TEM and X-ray diffraction. Several alloys produced had high strength (about 300 MPa) at temperatures up to 300 degreesC. The quasicrystalline particles were stable for coarsening and decomposition at temperatures up to 400 degreesC.