Microstructure and texture of P-type 75%Sb₂Te₃-25%Bi₂Te₃ alloy fabricated by using gas-atomization and extrusion processes was investigated. The microstructure of the gas-atomized powders exhibited fine grains with needle shape. After hot extrusion, grain size was characterized by fine and equiaxed grains due to dynamic recrystallization by severe deformation. (0001) basal planes of the extruded specimens were preferentially orientated parallel to extrusion direction. As extrusion temperature, fraction of the basal planes was increased.