The formation of quaternary 76Ni17Fe5Cu2Cr (wt. %) alloy by mechanical alloying is investigated. The elemental powders of Ni, Fe, Cu and Cr where milled in argon atmosphere in a planetary ball mill for time up to 20 h. Formation of the alloy was checked by X-ray diffraction studies. It is found that the rapid formation of the alloy lead to the rapid establishment of an equilibrium between the welding and fracture process during milling, leading to a constant particle size distribution over a big range of milling time. The morphology of the powders, studied by scanning electron microscopy (SEM) confirms the rapid increase in size. The particle size distribution and the flowability of the powders are also analyzed as a function of milling time. Enhanced magnetization was found for the milled samples, compared to a cast alloy.