Aluminum matrix composites strengthened by the quasi-crystalline (QC) phase were developed in the present study. The icosahedral $Al_{65}Cu_{20}Fe_{15}$ phase was produced by gravity casting and subsequent heat treatment. The mechanical milling process was utilized in order to produce the Al/QC composite powders. The microstructures of the composite powders were examined by optical microscopy (OM) and scanning electron microscopy (SEM). The composite powders were subsequently canned, degassed and extruded in order to produce the bulk composite extrusions with various volume fractions of QC. The microstructure and mechanical properties of the extrusions were examined by OM, SEM, Vickers hardness tests and compression tests. It was found that the microstructures of the Al/QC composites were uniform and the mechanical properties could be significantly improved by the addition of the QC phase.