The effect of extrusion temperature on the microstructure and mechanical properties was studied in gas atomized TEX>$Al_{81}Si_{19}$</TEX> alloy powders and their extruded bars using SEM, tensile testing and wear testing. The Si particle size of He-gas atomized powder was about 200-800 nm. Each microstructure of the extruded bars with extrusion temperature (400, 450 and 50$0^{circ}C$) showed a homogeneous distribution of primary Si and eutectic Si particles embedded in the Al matrix and the particle size varied from 0.1 to 5.5 ${mu}m$. With increasing extrusion temperature from 40$0^{circ}C$ to 50$0^{circ}C$, the ultimate tensile strength (UTS) decreased from 282 to 236 ㎫ at 300 K and the specific wear increased at all sliding speeds due to the coarse microstructure. The fracture behavior of failure in tension testing and wear testing was also studied. The UTS of extrudate at 40$0^{circ}C$ higher than that of 50$0^{circ}C$ because more fine Si particles in Al matrix of extrudate at 40$0^{circ}C$ prevented crack to propagate.