AlN powders were prepared by in-situ synthesis technique. It is a reaction of binary molten Al-Mg alloys with highly pure nitrogen. It was confirmed through thermodynamics calculation that Mg element in Al-Mg alloys can decrease oxygen content in the reacting system. Thus, nitridation reaction can be performed to form AlN. Moreover, an analysis of kinetics shows that the nitridation reaction of Al-Mg alloys can be accelerated and transferred rapidly with the increment of Mg content.