Elemental powders of the composition Al–12 wt% Zn–3 wt% Mg–1.5 wt% Cu with addition of 1 and 2 wt% Zr were ball milled in a planetary high-energy ball mill and then hot pressed in vacuum under 600 MPa pressure at 380 °C. The effect of ball milling and hot pressing on the microstructure was investigated by means of X-ray diffraction measurements (XRD), light microscopy, analytical and scanning transmission electron microscopy (TEM). Ball milling for 80 h leads to homogenous, highly deformed microstructure of aluminium solid solution with grain size below 100 nm. In the powder with zirconium addition, some part of the Zr atoms diffused in aluminium up to 0.3 wt% Zr. The remaining was found to form Zr-rich particles identified as face centered cubic (fcc) phase. Good quality samples without pores and cracks obtained by hot pressing composed of grains and subgrains of size below 200 nm. The particles of MgZn 2 phase were identified which were located mainly between compacted particles of milled powder. Hot pressed powder showed Vickers microhardness of about 195 HV (0.2 N) and ultimate compression strength in the range 611–658 MPa in the compression test. Addition of zirconium had no influence on the strength of the compacted powders.