In conventional warm compaction, both powder and die are heated to a certain temperature during compaction. This is a technique for producing P/M compacts with higher green and sintered strength as compared to room temperature pressing. However, there is a certain limit to powder temperature due to flow problems at higher temperatures. Heating the die above this practical limit can further improve properties. In this work, the effect of die temperature on green and sintered properties of Astaloy CrM powder has been investigated. Here, the powder at 135 oC was fed to the die at different temperatures. Density and strength for samples in green and sintered conditions were evaluated for two compaction pressures of 500 and 650MPa and temperatures ranging from ranging from 135 to 165 oC. Comparison of samples compressed at room temperature showed marked improvement in density and strength properties. A 22% increase in density, as well as 40% increase in green strength was observed. Tensile and impact strengths were improved by about 10% and 20% respectively. SEM micrographs showed more rounded pores and hence reduced stress raising sites. The improvement in properties can be mainly attributed to changes in powder morphology and die wall lubrication due to migration of hot lubricant from interparticle space to die walls. The latter will reduce particle spacing and bring about more intimate metal-metal contacts as well as better lubrication on die walls.