The mechanical behaviour of an alloy based on Fe-40Al prepared from mechanically alloyed powders was examined over a wide temperature range in the fine-grained, as-extruded state as well as after recrystallizing to a large-grained state. While the fine-grained material was strong and reasonably ductile at room temperature, in contrast with the weaker and more brittle large-grained material, at high temperature the strength fell to low values, similar for both materials. This behaviour is interpreted in terms of a contribution to strengthening due to the particles present, by Orowan hardening at low temperatures and by dislocation-particle interactions at high temperature, a contribution due to the grain size, which can harden at low temperatures and soften at high temperatures, and a contribution due to the matrix. The room temperature ductility seems to be dependent mostly on the grain size, since fine grain sizes can inhibit brittle crack formation.