The iron-based composite ceramic powder Fe-WC is produced by ball milling with synthetic tungsten mine and graphite. The process is accomplished through mechanical activation and reductive diffusion of the reactant powders during the milling process. The products are analyzed by means of XRD, DTA and EPMA. The results approved that the reaction does not carry through completely when the milling time is less than 8h. However, the composite powder of Fe and WC is gained by annealing from powders milled under 180V of the milling machine. The apparent activation energy of the reductive reaction is gradually decreased with the extending of milling time by mechanical activation.