The objective of the present work is to study the manufacturing process of steels with high carbon content (1.5–2.1wt%) obtained by powder metallurgy. The reference material was the Damascus steel, which was employed to manufacture swords named after it and has been widely known due to its very good mechanical properties. The main reasons of the success of this product are: the high carbon content of the initial steel and the thermomechanical treatment (forge and quenching) that ancient iron forgers kept secretly during centuries. Different carbon contents (2 to3 wt%) were added to the same Fe powder matrix (ASC 300), and compacted and sintered steels are heat laminated (750°C) with a reduction of 20%. For 2% carbon content, the result is a steel with yield strength of 450 MPa, Young’s Modulus of 14.3 GPa and hardness of 109 HV(30).