This paper presents development of a novel friction stir powder deposition (FSPD) process for potential repairing applications of aerospace-grade aluminum alloy AA6061-T6. Powder form of the deposition material was thermo-mechanically processed at a temperature below its melting point. Influence of various process parameters on thermal cycles, deposition quality, deposition height, ... [Show full abstract] microstructure, and mechanical properties have been studied. Higher degree of deformation resulted in a dynamically recrystallized fine-grained microstructure which gave better mechanical properties. EDS study revealed uniform distribution of the major alloying elements throughout the deposition. Best quality deposition showed maximum microhardness and wear rate 0.84 and 1.07 times respectively than the substrate AA6061-T6 alloy. FSPD process is found to be capable of depositing maximum height of 0.45 mm, maximum deposition efficiency of 22% with an energy consumption of 73.7 J/mm³ per unit deposition material consumption. Moreover, it used current in the range of 5-7 Ampere. This research shows that FSPD process can provide considerable cost and energy savings over fusion-based additive manufacturing processes making it a viable alternative for repairing aerospace-grade aluminum alloys.