Fabrication of TiAl strengthened Ti-based alloy by hot-pressed sintering of mixed powders of TiAl and Ti was studied at 1473 K under a pressure of 30 MPa for 1.5 h. The effects of composition ratio on the phase constitute and microstructures of hot-pressed sintering products were subsequently analyzed by XRD and SEM. Large difference exists in the phase distribution for the sintering products with different composition rations occurred. The feasibility of TiAl reinforced Ti-based alloy was confirmed with TiAl/Ti volume ratio of 7:3. Element Fe was examined to be concentrated in Ti2Al and Ti3Al. TiAl, Ti2Al(Fe), Ti3Al(Fe) and Ti-based phases were mainly formed in the sintering product. Different types of diffusion reactions occurred within the sintered body during hot-pressed sintering, finally leading to the formation of fine graded microstructures, Ti/Ti3Al(Fe)//Ti2Al(Fe)/TiAl.