Clathrate Ba8Al16Si30 was produced by arc melting and annealing effects on the microstructure and thermoelectric properties were investigated. The phase transformation behavior of arc-melted Ba8Al16Si30 was examined by thermogravimetric analysis, differential scanning calorimetry, hardness test, X-ray diffraction and scanning electron microscope analyses. Isothermal annealing was carried out to induce the transformation to a thermoelectric phase at 500°C to 700°C for 5 hrs. Thermoelectric properties in the temperature range between 300K and 600K were measured and evaluated. Electrical conductivity was decreased and Seebeck coefficient was increased with increasing isothermal annealing temperature. The arc-melted and the isothermal annealed specimens represented n-type conduction at temperatures examined, and they showed reliable thermoelectric behaviors.