Four different mechanical alloying(MA) processes were employed to fabricate very fine intermetallic compound particles dispersed Al composite materials(MMC) with Al-4at.%Zr composition. Phase transformations including phase stability during MA and heat treatment processes were investigated. Part of Zr atoms were dissolved into Al matrix and part of them reacted with hydrogen produced by decomposition of PCA(methanol) to form hydride during first MA process. These hydrides disappeared when alloy powders were heat treated at . Stable dispersoids with structure were formed by heat treating the mechanically alloyed powders at . On the other hand, metastable dispersoids with structure were formed during first MA of powers with Al-25at.%Zr composition. These metastable dispersoids transformed to stable with structure when heat treated above .