A new dispersion strengthened die casting alloys, Al-5Ni-5Mg (wt%) has been developed. It exhibits improved ductility when compared to the conventional Al-Si based die casting alloys such as Al-8Si-3Cu (ASTM 380). The new alloy has tensile elongations of 11%, which is significantly better than that of the Al-8Si-3Cu alloy. The measured tensile strengths of new alloy is 15% higher than that measured for the conventional alloys. The measured Charpy impact strengthof new alloy is 300% higher. The new alloy is close to binary eutectic compositions. Because of the relatively rapid solidification of the high pressure die casting process, this alloy contains a fine uniform dispersion of needle shaped Al3Ni particles. The Mg in solid solution with the Al matrix additionally strengthens the alloy.