An aluminum powder compact consolidated by a powder-in sheath rolling (PSR) method was severely deformed by accumulative roll-bonding (ARB) process. The ARB process was performed up to 8 cycles at ambient temperature without lubrication. Optical microscope and transmission electron microscope observations revealed that microstructure of the ARB-processed Al powder compact is inhomogeneous in the thickness direction. The ultra-fine subgrains often reported in the ARB-processed bulky materials were also developed near surface of the Al powder compacts in this study. Tensile strength of the ARB-processed Al powder compact increased at the 1st cycle, but from the 2nd cycle it rather decreased slightly.