Nickel aluminide (NiAl) is an essential intermetallic material with a high melting point and excellent high temperature corrosion resistance. It is a solid solution of Ni and Al in 40-61 mol.% Ni range. In this study, Ni0.50Al0.50 and Ni0.55Al0.45 powders were formed by using nickel and aluminum elemental powders through volume combustion synthesis (VCS). MgO powder was utilized as the thermal diluent. According to adiabatic temperature calculations, MgO was added to the reactant mixture in 10-40 vol.% range for preventing the melting and sintering of the formed Ni0.50Al0.50 and Ni0.55Al0.45 particles. After VCS, the products were ground into powder form and leached in 3M HCl solution in order to remove the MgO particles. After VCS, the samples which were obtained with 10 - 30 vol.% MgO addition were quite hard and difficult to grind. This indicated the partial sintering of the formed particles. It was relatively easier to grind into powder form the samples which contained 40 vol.% MgO. Therefore, it was determined that the most suitable MgO ratio for the formation of Ni0.50Al0.50 and Ni0.55Al0.45 powders was 40 vol.%. Formed powders were mostly in 5-100 µm particle size range. The formation of single phase pure powders was confirmed by the XRD analyses. A shift of about 0.1 degrees to higher 2-theta values was determined in the XRD peaks of the Ni0.55Al0.45 powder as compared to the Ni0.50Al0.50 phase, after annealing the powders. The results were in agreement with the crystallographic data.