Powders of AA2014 aluminum alloy, were manufactured by the technique of gas atomization, using highly purified argon gas with 15 bar pressure. The powders were then separated in groups and the size distribution of each batch was determined via a particle size analyzer devices. Thereafter, the aluminum powders of 95 mu m in optimum size were first blended with graphite, and later were all mechanically alloyed (MA) in a high energy vertical attritor. Besides the lubrication effect of graphite on MA, formation of Al4C3 phase was analyzed. Nevertheless Al4C3 precipitate formation could not be detected during and after the process of MA. Composite powder mixes of after MA, were then systematically analyzed by Scanning Electron Microscopy (SEM), Energy Dispersive Spectroscopy (EDS) and XRD techniques, respectively. In return, effect MA parameters on particle size and morphology, microstructure and microhardness of the final alloyed powders were investigated. It was found that mean particle size was almost the same by the end of 5 hours of MA, and the gradual increase in hardness of the composite particles was found to be because of the strain hardening took place during the process of MA.