The mechanical properties of Al-10Ti alloy prepared by mechanical alloying and subsequent hot hydrostatic extrusion were evaluated at room and elevated temperatures. Transmission electron microscopy was used to characterize the microstructural changes of this alloy on heat treatment at 500 degrees C for various times. The results show that the mechanically alloyed Al-10Ti has high strength and high thermal stability at elevated temperature. The strength and stability of this alloy are attributed to its fine grain size and to the high volume fraction of small Al3Ti intermetallic compounds dispersed in the aluminium matrix. After 50 h annealing at 500 degrees C, no serious coarsening of either the Al3Ti dispersoids or the grains was observed.