In this study, mechanical behavior of iron-based ( Fe-0.8C-2.0Cu-4.5Ni-1.8Mo-.0lB (wt.%)) metal matrix composite synthesized by powder metallurgy was investigated for gear production. Metal matrix composite has been produced by warm compaction, followed by free sintering in controlled Ar gas atmosphere. Green composite was produced under pressure of 650 MPa at 160 degrees C. The green products have been sintered at various temperatures ( 1050, 1150 and 1250 degrees C) and for various time periods ( 30, 60 and 90 min). Mechanical tests ( hardness and wear tests) have been conducted. The microstructure and the worn surfaces of the samples have been examined under scanning electron microscope and analyzed by energy dispersive spectroscopy and X-ray diffraction method. The results have shown that hardness and wear resistance of the samples increase with increasing sintering temperature and time. Effect of sintering temperature is greater than that of sintering time. The highest hardness and wear resistance have been obtained in the composite sample produced at 1250 degrees C for 90 min.