PURPOSE: To produce a high strength ferrous sintered alloy by mixing high speed steel powder with specified amounts of Mo and Cr in a powdery state together with graphite powder, subjecting it to compacting and executing sintering.

CONSTITUTION: The powder of a high speed steel having a compsn. contg., by weight, 5 to 7% W, 4 to 6% Mo, 3.5 to 4,5% Cr, 1.5 to 2.5% V, 0.8 to 1.0% C, and the balance Fe is added to Fe-Mo constituted of 1 to 2% Mo and the balance Fe, Fe-Cr constituted of 1 to 2% Cr and the balance Fe or Fe-Mo-Cr contg. 1 to 2% Mo and Cr in the ratio of 20 to 75%, and 0.5 to 1.5% graphite powder in a state of fine powder having ≤75μm average grain size, and mixing is executed. This mixed powder is subjected to compacting, is thereafter subjected to temporary sintering, is successively repressurized under 12 to 15ton/ cm2 pressure and is subsequently sintered at 1150 to 1200°C. The high strength ferrous sintered alloy in which the alloy grain areas of Mo and Cr are bindingly dispersed into a high speed steel grain area contg. fine metallic carbides of ≤5μm via a dispersed phase can be obtd.