Effect of PVA binder content on characteristics of granulated aluminum alloy powders produced by fluidized-bed wet type granulator was investigated. The granulated powder had a mean particle size of 75-100μm and showed spherical shape. Flowability was remarkably improved and it was equivalent to that of iron powder. Apparent density of granulated powder was decreased compared with that of raw one because of both the uniform particle size distribution and spherical shape. Dimensional tolerance of green compacts obtained by using granulated powder was much improved compared with that in using raw powder because weight of powders in die fill was stabilized due to the excellent flowability.