2124 alloy powders have been compacted using explosive compaction. The effect of process parameters like explosive pad thickness and impact energy imparted to the powders on the microstructure and hardness across the cross-section of the compact have been investigated. When the thickness of the explosive pad was increased to 9.5 mm, three distinct microstructures with different hardness values were found across the cross-section of the compact. The size and shape of the theta phase precipitates were different in the fine grained structure when compared with that of the original particles and triple point junctions. Central porosity and pipe formation were observed when the thickness of the explosive pad was increased beyond 14.5 mm. Variation in the microstructure of the compact across the cross-section disappeared when the diameter of the compact was increased from 11 to 25 mm.