The microstructure evolution of Al–Sr master alloy during continuous extrusion was investigated using X-ray diffractometer, scanning electron microscope and transmission electron microscope. Results indicate that the continuous extrusion process could change the Al4Sr particles of the alloy significantly in size and morphology. The as-cast needle-like Al4Sr particles are broken into small blocks in upsetting zone and crushed heavily in adhesion zone. Plenty of dislocations get tangled up in right-angle bending zone. Al4Sr particles grow in the extending zone. Finally, Al4Sr particles in products are approximately 28 μm in length. Al2Sr particles precipitate during the process. Compared with products by horizontal extrusion, Al4Sr particles by continuous extrusion are finer and distribute more evenly.