In this study, ternary Al-Mg-Sc alloys were produced using powder metallurgy processing method. Alloy powders were produced by using gas atomisation method. Produced powders were encapsulated with aluminum can, degassed, pre-compacted and consolidated by extrusion at 300°C. The properties of the powders and consolidated materials were investigated. Produced powders were spherical in shape and had log normal particle size distribution. The microstructure of the powders were of dendritic type. It has been observed that the addition of scandium content increased the room temperature tensile strength of the Al-Mg alloys. The maximum strength achieved was 595 MPa tensile and 567 MPa yield with a fracture elongation of 13.1% for Al-6Mg-1.9Sc alloy.