$Al_{85}Ni_{10}Y_5$ (at. %) amorphous alloy ribbons have been produced by rapidly solidification process and consolidated by the conventional powder metallurgy method. The grains with ∼90 nm were obtained in the Al85Ni10Y5 alloy extrudates by hot-pressing followed by hot-extusion. To investigate the effect of heat treatment on microstructural change of the extrudates, heat treatment was carried out from 200℃ to 400℃ at the step of 50℃. In addition, mechanical properties of the extrudates were analysed from torsion test at the temperature range or 400∼500℃ under a strain rates of 0.2, 0.5, and 1.0/sec. The extrudates showed a flow stress of ∼190 MPa and low elongation of ∼150% at 400℃, contributing to the enhancement of ductility and hardness for extrudates. Also, grain boundary sliding was occurred in the $Al_{85}Ni_{10}Y_5$ alloy during hot deformation.