NiAl powders containing oxide dispersoids have been produced by mechanical alloying process in a controlled atmosphere using high energy attrition mill. The powders have been consolidated by hot extrusion and hot pressing followed by isothermal annealing to induce microstructure coarsening to improve high temperature properties. Grain growth and dispersoid coarsening kinetics have been investigated as functions of annealing time and temperature. Coarsening of dispersion strengthen NiAl and dispersoid has been discussed. Some clues of secondary recrystallization have been investigated. Mechanical property measurements have been also made and correlated with the microstructures.