One of the major obstacles to the effective use of carbon nanotubes as reinforcements in metal matrix composites is their agglomeration and poor distribution/dispersion within the metallic matrix. In the present work, we use mechanical alloying (MA) to mechanically mix CNT (2 and 5 wt.%) with Al powders. These powders would be used as precursors for subsequent consolidation to generate bulk CNT-Al composites. Hence controlling the initial powder characteristics prior to high temperature consolidation is important. Up to 48 It of milling was employed to investigate the effect of milling time on the particle size, morphology and CNT dispersions. The results show that particle size and morphology vary with milling time and CNT content. Also the addition of process control agents such as methanol can aid in controlling the powder characteristics.