Abstract: A method for preparing controlled phase alloys useful for engineering and hydrogen storage applications. This novel method avoids melting the constituents by employing vapor transport, in a hydrogen atmosphere, of an active metal constituent, having a high vapor pressure at temperatures .apprxeq.300 C. and its subsequent condensation on and reaction with the other constituent (substrate) of an alloy thereby forming a controlled phase alloy and preferably a single phase alloy. It is preferred that the substrate material be a metal powder such that diffusion of the active metal constituent, preferably magnesium, and reaction therewith can be completed within a reasonable time and at temperatures .apprxeq.300 C. thereby avoiding undesirable effects such as sintering, local compositional inhomogeneities, segregation, and formation of unwanted second phases such as intermetallic compounds.