Two atomized alloy powders were pre-compacted by cold and subsequently hot forged at temperatures ranging from 653K to 845K. The addition of Cu and Mg causes a decrease in the eutectic reaction temperature of Al-10Si-5Fe-1Zr alloy from 841K to 786K and results in a decrease of flow stress at the given forging temperature. TEM observation revealed that in addition to Al-Fe based intermetallics, Al2Cu and Al2CuMg intermetallics appeared. The volume fraction of intermetallic dispersoids increased by the addition of Cu and Mg. Compressive strength of the present alloys was closely related to the volume fraction of intermetallic dispersoids.