A novel ternary alloy with the composition of Al–20Mg–2Zr (wt-%) was prepared by close coupled gas atomisation. The thermal oxidation behaviour of the powder was examined by thermogravimetry–differential thermal analysis. The results showed that the oxidation proceeded in single step, and the violent exothermic reaction occurred after 900°C was almost complete. The activation energy of the oxidation was ∼250 kJ mol− 1, and the frequency factor was ∼1.47 × 1011 s− 1 and 3.36 × 1011 s− 1 using the Kissinger and Ozawa method respectively. The special feature of the pulsed oxidation was explained by the melt dispersion oxidation mechanism. The excellent thermal reactivity exhibited by the Al–20Mg–2Zr powder suggested that this novel alloy could become one of the most promising materials in energetic applications.