The relationship between structure and mechanical properties of extruded Al-210%Fe powder metallurgy (P/M) alloys was investigated. The yield strength (σ0.2) is related to the volume fraction of dispersoids (Vf) and the average dispersoid radius(r): σ0.2∝Vf3/2•r-1. This relationship suggests that higher Vf and smaller r result in higher strength. Increase of Fe content raises the strength of Al-Fe alloy because of the increase of volume fraction of dispersoids. Annealing at the temperature above 400°C lowers the strength of Al-8%Fe alloy because of coarsening of dispersoids.