High strength and high hardness can be readily attained after sintering when sinter-hardening grade powder metallurgy alloys are used. However, fast cooling rates greater than 60°C/min are usually required. This increases the cost of the sintering equipment and maintenance. To lower the required minimum cooling rate, the homogeneity of the alloying elements in the matrix and the hardenability of the material must be improved. Among the various popular alloying elements, nickel and carbon are the two most non-uniformly distributed elements due to their repelling effect. It is found that to improve their homogenization, the addition of Cr and Mo can alleviate the repelling effect between Ni and C. As a result, weak Ni-rich/C-lean ferrite and austenite are eliminated and replaced by hard bainite and martensite. A tensile strength of 1323 MPa and a hardness of 39 HRC are attained in sinter-hardened Fe-3Cr-0.5Mo-4Ni-0.5C compacts without any quenching treatment.