The objective of this work was to study the production of powders of Ag-ZnO alloy by means of mechanical alloying and reaction milling. The experimental procedure was divided in two stages. During the first stage, Ag and Zn turnings were mechanically alloyed under Ar atmosphere using a SPEX 8000D mill. In the second stage, the powders obtained by mechanical alloying were milled under air using ethanol as process control agent. The powders microstructural characterization was carried out by X-ray diffraction and optical microscopy. Based on the results obtained it can be conclude that by means of combination of mechanical alloying and reaction milling processes it is possible to obtain a Ag-ZnO alloy with a fine and homogeneous distribution of ZnO precipitates. © 2012 Universidad Simón Bolívar.