Cold gas dynamic spray has significant potential for load-bearing repairs of high-value metallic components, as it is capable of producing pore and oxide-free deposits of significant thickness and with good levels of adhesion and mechanical strength. However, recently published research has shown that the rapid solidification experienced by gas atomised powders during manufacture can lead to a non-equilibrium powder microstructure, including clusters of dislocations as well as significant localised segregation of alloying elements within each particle. This paper reports on an investigation into the solution heat treatment of a precipitation hardenable aluminium alloy powder. The objective was to create a consistent and homogeneous powder phase composition and microstructure before cold spraying, with the expectation that this would also result in a more favorable heat treatment response of the cold spray deposits. Aluminium alloy 7075 gas atomized powders were solution heat treated at 450 °C for 5 hours in a sealed glass vial under vacuum and quenched in water. The powder particle microstructures were investigated using scanning electron microscopy with electron back scatter diffraction (SEM/BSE) and optical microscopy. The dendritic microstructure and solute segregation in the gas atomized powders was altered, with the heat-treated powder particles exhibiting a homogeneous distribution of solute atoms. The influence on the mechanical properties of the powder particles was studied using micro-indentation. The heat-treated powders exhibited a hardness decrease of nearly 25% compared to the as-received powders. This paper relates the behavior and the deformation of both as-received and heat-treated powders during spraying (single particle impacts), comparing the measured hardness with the deformation effect and the material jetting occurring upon impact.