The densification behavior of Al-20Si-5.5Fe-1.2Mg-0.5Mn powders was investigated through micro-structure analysis of sintered specimens. The specimens sintered in vacuum or in high purity (99.999%) nitrogen showed porous near-surface microstructures. The densification of near-surface part was enhanced by means of ultra-high purity (99.9999%) nitrogen atmosphere. The relationship between slow densification and oxide surfaces of Al alloy powders was discussed. And the effects of Mg addition, nitrogen gas, and humidity on densification were discussed. In addition, the rapid growth of primary Si crystals above the critical temperature was reported.