In the present study, we report the enhancement in figure-of-merit (ZT) of nanostructured n-type Silicon-Germanium (Si80Ge20) thermoelectric alloy synthesized using high energy ball milling followed by spark plasma sintering (SPS). After 90 h of ball milling of elemental powders of Si, Ge and P (2 at.%), a complete dissolution of Ge in Si matrix has been observed forming the nanostructured n-type Si80Ge20 alloy powder. X-ray diffraction analysis (XRD) confirmed the crystallite size of the host matrix (Si) to be ∼7 nm and also indicated the formation of an additional phase of SiP nano-precipitates after SPS. HR-TEM analysis revealed that the nano-grained network was retained post-sintering with a crystallite size of size of 9 nm and also confirmed the SiP precipitates formation with a size of 4 to 6 nm. As a result, a very low thermal conductivity of ∼2.3W/mK at 900°C has been observed for Si80Ge20 alloy primarily due to scattering of phonons by nanostructured grains and nano-scaled SiP precipitates which further contribute to this scattering mechanism. Electrical conductivity values of SiGe sintered alloy are slightly lower to that of reported values in literature. This was attributed to the formation of SiP which creates a compositional difference between the grain boundary region and the grain region, leading to a chemical potential difference at interface and the grain region. Figure-of-merit (ZT) of n-type Si80Ge20 nanostructured alloy was found to be ≈1.5 at 900°C, which is the highest reported so far at this temperature.