A technology combining hot isostatic pressing (HIP) with isothermal forging (IF) was used to prepare TC17 powder alloy, and the changes of its microstructure and properties were also researched and analyzed. The results indicated that the powder alloy prepared by HIP of atomized TC17 powder with particle size <104 μm exhibited a homogeneous chemical composition and a fine acicular Widmanst?tten microstructure, and the tensile strength at room temperature (RT) was 1210 MPa, the elongation only 4%. After low-velocity IF at high and low temperature, the density of the powder alloy was further improved (99.9%), and primary β grains were broken completely, resulting in gaining fine and equiaxed grains. After solution aging heat-treatment, much equiaxed α phases distributed around transformed β matrix evenly, and their size was 1~2 μm. Finally, the powder alloy exhibited tensile strength of 1210 MPa at RT and elongation of 16%, and the strength and plasticity were matched excellently and exceeded technical demands for more.