In the presented paper, properties of Al-Cr-Fe-Ti alloy produced by powder metallurgy (PM) are described. Rapidly solidified powder alloy was prepared by the pressure nitrogen melt atomization. The granulometric powder fraction of less than 45 μm was then hot-extruded. Microstructure of the as-extruded material comprised recrystallized α-Al grains and spheroids of intermetallic phases. Tensile strength of the investigated material was similar to that of a conventional casting Al-Si alloy commonly used in elevated temperature applications. Excellent thermal stability of the PM Al-Cr based material, which much exceeded the elevated temperature casting alloy, was proved by room temperature tensile tests after long-term annealing at elevated temperature. Reasons for the observed thermal stability of the investigated PM alloy are discussed.