Semi-solid powder rolling (SSPR) is widely used to produce alloy strips with fine grains and excellent performances in the automotive, aerospace and shipbuilding industries. During SSPR, powder temperature, as a very important parameter, greatly affects strips’ microstructures and mechanical properties, which have been investigated by many researchers, but its effect on the forming process and mechanism has rarely been studied. Therefore, based on online experimental detection and transient simulation, the microstructures, strip temperatures, relative densities and rolling forces at different conditions were, respectively, measured, calculated, compared and analyzed in order to study the deformation process and mechanism during SSPR. The result shows that with the increase in powder temperature, the strip temperature and relative density increase, while the rolling force decreases. The grains of the strips are refined after SSPR, and fine and dense microstructures are obtained at 600 °C, which is the optimum powder temperature. In the main deformation sections (II and III), when the contact normal force exists and reaches a maximum, the relative density and rolling force increase rapidly. At these sections, the strips rolled at 600 °C are mainly in a porous solid state, and powder crushing dominates the strip deformation. Therefore, SSPR at 600 °C and below can be considered porous or powder hot rolling, integrating powder crushing, solidification, deformation, densification and grain coarsening. Moreover, as the simulated values are basically consistent with experimental values, the thermomechanical coupling model based on the Fourier equation and its parameters are confirmed to be reasonable.