Aluminium-chromium based alloys are promising candidates for manufacture of light components exposed to elevated temperatures. The work describes properties of Al-6.0wt.%Cr- 2.1wt.%Fe-0.5wt.%Ti alloy. The rapidly solidified powder was prepared by the pressure nitrogen melt atomization. The powder was then subject to heat treatment in order to investigate solid state phase transformations. Compaction of the powder was carried out by hot extrusion after preheating at 450 °C. Microstructure, phase composition and structural transformations on heat treatment were investigated in the as-atomized powder, as well as in the as-extruded alloy. It is found that metastable state of the rapidly solidified powder is characterized by presence of quasi-crystalline phases and supersaturated solid solution. Heating before and during the hot extrusion induces decomposition of the supersaturated solid solution and quasicrystalline to crystalline phase transformations. The hot extruded alloy has a refined recrystallized structure that remains very stable aven after long-term annealing at 400 °C. Mechanical properties of the extruded alloy are discussed in terms of strengthening mechanisms.