Mechanical alloying of $Ni_3Al$ and $Y_2O_3$ added ODS $Ni_3Al$ from elemental powders was investigated by the X-ray diffraction, differential scanning calorimeter, transmission electron microscopy and optical microscopy. The steady states of $Ni_3Al$ and ODS $Ni_3Al$ powders were reached after mechanical alloying with the condition of the ball-to-powder input ratio of 20:1 for 20 hours and 10 hours, respectively. The addition of nano-sized $Y_2O_3$ particles enhanced cold working and fracture, and subsequently accelerated MA of $Ni_3Al$ powders. DSC results of MAed $Ni_3Al$ powders showed four exothermic peaks at 14$0^{circ}C$, 234$^{circ}C$, 337$^{circ}C$ and 385$^{circ}C$. From the high temperature X-ray diffraction analysis, it was concluded that the peaks were resulted from the recovery solution of unalloyed Al in Ni, the formation of intermediate phase NiAl, and $LI_2$ ordering of MAed $Ni_3Al$ powders.