Along with the growth of conventional ferrous powder metallurgy (PM), PM of aluminum alloys has been intensively investigated in Japan. Although rapidly solidified aluminum alloy powder was first used in the USA,/sup 1)/ commercialization for consumer market was first realized in Japan./sup 2)/ In order to achieve the viable cost-performance including Near Net Shape (NNS) formability, we developed three processes, powder extrusion, powder forging and sintering. The new powder extrusion process does not use either capsulation or vacuum degassing. The new powder forging does not need lateral flow. The new sintering process does not use liquid phase. The performance achieved by the processes is outstanding mechanical or physical properties that has potential to substitute cast iron, steel, titanium Metal Matrix Composite (MMC) or Ingot Metallurgy (IM) aluminum alloys. Cooperation with customers, powder suppliers and research associations contributed to the advancement of PM aluminum alloys in Japan.