A lower-temperature and cost-efficient way is developed to produce Fe-TiC powders. Fe-TiC is produced by means of mechanical activation -reductive diffusion with ilmenite and graphite. The feasibility of this method and the kinetics of the carbothermic reduction are studied with both natural ilmenite and synthetic ilmenite, respectively. The result approved that Fe-TiC powder could be produced by this new technique; moreover, the particles were prominently diminished in size and activated after ball milling. No obvious reactions were detected when ball milling time was less than 8h by EPMA and XRD; however, the mixed powder of Fe and TiC was obtained after annealing for different time intervals. The kinetic study showed that the apparent activation energy of the reductive reaction decreased gradually with milling time due to mechanical activation, but this effect weakened after ball milling for 6h. As ascertained experimentally, the optimum ball milling time was between 4h and 6h.