In recent years considerable effort has been expended on the development of dispersion strengthened alloys by mechanical alloying. Our research has shown that considerable improvement in microstructure control and properties can be gained by carrying out milling at cryogenic temperatures. We have found that aluminum and dilute aluminum alloys can be dispersion strengthened with aluminum oxy-nitride particles by the use of a slurry milling technique where the fluid medium is liquid nitrogen. The alloyed powders produced by this technique are strengthened by aluminum oxy-nitride particles which are typically 2–10 nm in diameter and with a mean spacing of 50–100 nm. The dispersoids are generated during the milling process by adsorption and reaction with components of the liquid nitrogen bath. On thermal treatment prior to consolidation, the alloyed powders recrystallize to a grain size which is typically in the range 0.05 to 0.3 μm. The alloys exhibit a yield stress in excess of 325 MPa at room temperature and a virtually temperature independent yield stress of about 130 MPa at temperatures greater than 375° C. The paper describes the preparation of dispersion strengthened aluminum by cryomilling, the characteristics of the microstructure and discusses some aspects of the mechanical properties.