Powder metallurgical TiAl alloy was fabricated by gas atomization powders, and the effect of heat treatment temperature on the microstructure evolution and room tensile properties of PM TiAl alloy was investigated. The uniform fine duplex microstructure was formed in PM TiAl based alloy after being heat treated at 1250/2h followed by furnace cooling (FC)+ 900/6h (FC). When the first step heat treatment temperature was improved to 1360/1h, the near lamellar microstructure was achieved. The ductility of the alloy after heat treatment improved markedly to 1.2% and 0.6%, but the tensile strength decreased to 570MPa and 600MPa compared to 655MPa of as-HIP TiAl alloy. Post heat treatment at the higher temperature in the alpha plus gamma field would regenerate thermally induced porosity (TIP).