The reaction sequences of the formation of nitrogen-containing magnesium aluminate spinel from MgO, Al2O3, and AlN were investigated as a function of temperature through dilatometric study and as a function of time through isothermal heat treatments. The natures of reactions are described through the appearance of phases in conjunction with densification behavior and the change in lattice parameter of the spinel phase. Although the dilatometric study provides the detail insights of the formation sequence, the isothermal runs reveal new information about the differential rate of reactivity of the reacting species that suggested a tentative controlling mechanism. Through the initial formation of magnesium aluminate, oxygen-rich solid solution (MgAlON) forms, which ultimately reacts with the rest of AlN to reach its nominal composition. Nitrogen diffusion through MgAlON lattice seems to be rate controlling.