A high heat resisting and high abrasion resisting aluminum alloy and aluminum alloy powder have superior toughness, abrasion resistance, high temperature strength, and creep resistance and are useful to form engine parts for automobiles, airplanes, etc. The high heat resisting and high abrasion resisting aluminum alloy comprises 2 to 15 wt % of Ni, 0.2 to 15 wt % of Si, 0.6 to 8.0 wt % of Fe, one or two of 0.6 to 5.0 wt % of Cu and 0.5 to 3 wt % of Mg, the total amount of Cu and Mg being equal to or less than 6 wt %, one or two of 0.3 to 3 wt % of Zr and 0.3 to 3 wt % of Mo, the total amount of Zr and Mo being equal to or less than 4 wt %, 0.05 to 10 wt % of B, and the balance of Al and unavoidable impurities, and is produced by powder metallurgy.