Nanopowders of $Co_3O_4$ and FeAl were fabricated by high energy ball milling. Dense 4.25 $Co_{0.53}Fe_{0.47}-Al_2O_3$ composite was simultaneously synthesized and consolidated by high frequency induction heated combustion method within 2 min from mechanically activated powders. Consolidation was accomplished under the combined effects of a induced current and mechanical pressure of 80 MPa.