Mechanical alloying and hot extrusion were studied as a means to dispersion harden an intermetallic compound based on Ni 3 Al- B from elemental powder mixture. The oxide used for the dispersoids was partially stabilized zirconia. During mechanical alloying the microstructure evolved according to the characteristic stages found in other mechanical alloying systems. Completion of the alloying reaction required 16 h, beyond which loss of the crystalline property set in. Experimental observation of the grain refinement during mechanical alloying agreed with a prediction based on an existing model. Compared to V- cone mixing, the mechanical alloying produced a homogeneous distribution of fine dispersoids. The refined grain structure and dispersoids resulted in a high tensile yield strength over a wide range of temperatures.