High strength near-beta titanium alloys are being increasingly used in industry due to their excellent combination of properties. Blended elemental powder metallurgy (BEPM) allows to produce the above alloys and parts from them in a cost-effective manner. However, the alloy synthesis is complicated by a big amount (up to 18 wt.%) of alloying elements which diffusional redistribution between alloying particles and titanium matrix has a strong impact on microstructure evolution. In this paper synthesis of the high-strength alloys from the powder blends based on hydrogenated titanium was studied. It was found that hydrogen strongly affects diffusion controlled processes upon synthesis, such as chemical homogenization, densification and grain growth through its influence on phase composition and defect structure of the blends. Optimization of the processing parameters allowed to produce uniform, nearly-dense alloys with reduced grain size, which mechanical properties met the requirements of corresponding specifications.