The mechanical properties of titanium and titanium alloys are very sensitive to processing, microstructure, and impurity levels. In this paper, a blended powder mixture of Ti-6Al-4V alloy was consolidated by powder compact extrusion that involved warm compaction, vacuum sintering, and hot extrusion. The as-processed material with an oxygen content of 0.34 wt.% was subjected to various annealing treatments. The impact toughness of heat-treated material was determined using Charpy V-notch impact testing at room temperature. An emphasis was placed on establishing a relationship among fracture behaviour, microstructure, and the resulting properties of tested material. From the results, it is apparent that the highest impact toughness value of 19.3 J was achieved after α/β annealing and is comparable with typical values given in the literature for wrought Ti-6Al-4V. In terms of fracture behaviour, it is quite apparent that the crack propagation behaviour of powder-produced material is rather complex compared with the limited amount of data reported for ingot counterparts.