The relationship between processing parameters, microstructure, and mechanical properties of Al-8.3Fe-1.3V-1.8Si alloy processed by laser powder bed fusion is seldom studied. Therefore, fully dense alloys with two parameters were selected to investigate this key issue. The results show that the alloy with low power and scanning speed (S200) shows fan-shell-shaped melt pools and laser tracks while another (S350) shows a deeper and wider melt pool. Both alloys obtain a heterogeneous microstructure without a secondary phase in melt pool (MP) and a nano-sized phase in melt pool boundary (MPB). The difference between solid-solution strengthening and Orowan strengthening in MP and MPB contributes to the difference in compressive yield strength (S200: 380 ± 14 MPa and S350: 705 ± 16 MPa), and heterogeneous nano-hardness results in different crack behaviours and failure strains. This work indicates that adjusting processing parameters is an effective method to control microstructure and mechanical properties of this alloy.