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One of the current problems concerning the re-use of aluminium alloys is the recycling of aluminium alloys with increased content of iron. One of the recent trends is the processing by powder metallurgy, producing completely new grades of aluminium alloys. The aim of the present work was to test the properties of Al–Si–Fe alloy, which can be manufactured from the high-irony scrap, as a possible material for elevated temperature applications. Since chromium and nickel accompany the iron in the scrap when stainless steels are admixed, the effect of chromium and nickel on thermal stability and mechanical properties at room and elevated temperature was also studied. Al–Si–Fe–X alloys were rapidly solidified by using melt spinning technique. The rapidly solidified ribbons were pulverized by planetary ball mill and the obtained powders were used for compaction by means of Spark Plasma Sintering. It was found that nickel improves the thermal stability as well as the mechanical properties at the elevated temperature. On the other hand, the effect of chromium on the mechanical properties at elevated temperature was almost detrimental. [ABSTRACT FROM AUTHOR]