A stoichiometric MgAl2O4 spinel (MAS) powder was processed in aqueous media and consolidated by gelcasting from suspensions containing 41–45 vol% solids loading. The MAS powder was first obtained by heat treating a compacted mixture of α‐Al2O3 and calcined caustic MgO at 1400°C for 1 h, followed by crushing and milling. Then, its surface was passivated against hydrolysis using an ethanol solution of H3PO4 and Al(H2PO4)3. The as‐treated surface MAS powder could then be dispersed in water using tetra methyl ammonium hydroxide and an ammonium salt of poly‐acrylic acid (Duramax D‐3005) as dispersing agents. The as‐obtained stable suspensions were gelcast, dried, and sintered at 1650°C for 1–3 h. For comparison purposes, the treated powder was also compacted by die pressing of freeze‐dried granules and sintered along with gelcast samples. Near‐net‐shape MAS components with 99.55% of the theoretical density could be fabricated by aqueous gelcasting upon sintering at 1650°C for 3 h. The MAS ceramics fabricated by gelcasting and die pressing exhibited comparable properties.