Al–3Cu–Mg alloy was fabricated by the powder metallurgy (P/M) processes. Air-atomized powders of each alloying element were blended with various Mg contents (0.5%, 1.5%, and 2.5%, mass fraction). The compaction pressure was selected to achieve the elastic deformation, local plastic deformation, and plastic deformation of powders, respectively, and the sintering temperatures for each composition were determined, where the liquid phase sintering of Cu is dominant. The microstructural analysis of sintered materials was performed using optical microscope (OM) and scanning electron microscope (SEM) to investigate the sintering behaviors and fracture characteristics. The transverse rupture strength (TRS) of sintered materials decreased with greater Mg content (Al–3Cu–2.5Mg). However, Al–3Cu–0.5Mg alloy exhibited moderate TRS but higher specific strength than Al–3Cu without Mg addition.