Rapidly solidified 2024 aluminium alloy powders were mechanically milled, then consolidated to bulk form. The microstructural changes of the powders in mechanical milling (MM) and consolidation process were characterized by X-ray diffraction analyses and transmission electron microscopy observations. The results showed that mechanical milling reduced the grain size to nanometer, dissolved the Al2Cu intermetallic compound into the aluminium matrix and produced an aluminium supersaturated solid solution. During consolidation process. the grain size increased to submicrometer, and the Al2Cu and Al2(Cu, Mg, Si, Fe, Mn) compounds precipitated owing to heating. Increasing consolidation temperature and time results in obvious grain growth and coarsening of second phase particles. The tensile yield strength of the consolidated alloy with submicrometer size grains increases with decreasing grain size, and it follows the famous HallPetch relation