Magnesium alloy AZ91 was prepared by powder metallurgy method, and the effect of sintering temperature on the densities and microstructures of the alloys was investigated. The results show that tight control of the sintering temperature within a narrow range around the liquidus level generates structures with high integrity and reduces some of the disadvantages caused by the higher temperatures. The matrix consists of α-Mg grains/cells surrounds by discontinuous precipitates of Mg17Al12 intermetallics which are normally located at the grain boundaries and triple junction.