The nanoparticles of Al-doped ZnO were successfully grown into rod-like and platelet-like morphologies by soft chemical routes. These powders were consolidated using spark plasma sintering (SPS) technique. The samples consolidated from rods and platelets exhibited characteristic structures with preferential orientation while the sample consolidated from nanoparticles did not show any sign of preferential orientation. The measured ZT values along the preferred orientation directions were found to be 0.16 and 0.25 at 1223 K for the samples consolidated from rods and platelets, respectively. The sample consolidated from nanoparticles exhibited fine grains and highly distributed nanoprecipitates, resulting in a ZT value of 0.3 at 1223 K due to the lower thermal conductivity resulting from nanostructuring. Using the simple parabolic band model and Debye–Callaway thermal transport model, the anisotropic properties of the nanostructured samples were elucidated and the influence of the grain size and nanoprecipitates on the electron and phonon transport was analyzed and discussed in detail.