To provide a manufacturing method by which manufacturing time in manufacturing a powder metal component can be shortened and manufacturing costs can be reduced.

The method for manufacturing the powder metal component comprises: a step of preparing metallurgical powder containing, by weight, 0 to 1.5% silicon, 0.4 to 0.9% carbon, 0.5 to 4.5% nickel, 0.5 to 1.0% molybdenum, 0 to 0.5% manganese and 0 to 1.5% copper; a step of compacting the metallurgical powder at 25 to 65tsi pressure to prepare a green compact of 6.4 to 7.4g/cc density; a step of heating the green compact at 2,100 to 2,400°F for 20 to 60min and then holding it at 1,000 to 1,900°F for 5 to 60min; a step of selectively densifying the green compact to ≥7.6g/cc density; and a step of heating the green compact again at 1,650 to 2,100°F for 20 to 80min and cooling it at a rate of 150 to 250°F/min.