According to the recent technological developments in modern industries such as automotive and aerospace industries, the use of materials which can retain their mechanical properties at elevated temperatures is essential. Considerable developments which have been made on intermetallic compounds and their applications show that such industries need to use these materials. Nowadays, Zirconium tri- Aluminide intermetallic has attracted much attention due to its good thermal stability and high specific strength. In this study, Al3Zr compound was produced by mechanical alloying. The results showed that no new phase is produced in the powder mixtures after 50 hours of mechanical alloying. After heat treating the mechanically alloyed powder at 600oC for 1 hour, the Al3Zr compound was formed. The grain size of the Al3Zr compound was measured to be 32 nm.