Solidification microstructure in spray-atomized Pd-10 wt % Rh powders using high-pressure gas atomization was studied. The solidification cooling rate and the solidification front velocity were investigated using a transient heat-transfer finite element method. Two different atomization gases, nitrogen and helium, were considered in the modelling studies. On the basis of the results obtained, it was found that gas atomization using helium gas led to solidification cooling rates and solidification front velocities which were two times higher than those obtained using nitrogen gas. Moreover, the cooling rate and the solidification front velocity increased with decreasing powder size for both types of atomization gas. The numerically estimated solidification front velocity using finite element analysis for nitrogen gas atomization was found to be smaller than the analytically determined absolute stability velocity that is required to promote a segregation-free microstructure. This was noted to be consistent with the segregated microstructure that was experimentally observed in nitrogen gas atomized powders. In the case of helium gas atomization, however, the increased cooling rate and solidification front velocity are anticipated to promote the formation of a segregation-free microstructure in the gas-atomized powders.