The mechanical properties of mechanically alloyed Al-4wt%Mg alloys dispersed with $MgAl_2O_4$ dispersoilds at room and elevated temperatures were investigated. The powders in steady state during mechanical alloying consisted of Mg-supersatu rated Al solid solution and $Al_4C_3$ which resulted from the reaction of Al with C in process control agent (methanol). The hot-extruded materials consisted of uniformly dispersed fine $MgAl_2O_4$, ${gamma}-Al_2O_3$, $Al_2O_3$ and matrix with extremly fine substructure. Tensile specimens prepared from the extruded bars were tested at room temperature to $400^{circ}C$ under different strain rates. The tensile strength of alloys at room temperature ranged from 500 to 594MPa. At elevated temperatures, the tensile strengths and elongations decreased with increasing temperature. Adding 3% $MgAl_2O_4$ to Al-4wt%Mg increased the tensile strength of 50MPa at rowan temperature and 20MPa at $400^{circ}C$.