In this paper, X-ray diffraction (XRD), differential scanning calorimetry (DSC) and sintering process were used to characterize Cu-Fe compound powders milled for different times. The increment of defects and the change of granularity, grain size and crystal structure were discussed. Mechanical Alloying (MA) influence on the sintering of Cu-Fe compound powders was analyzed. The results showed that, the refinement of the powders and the increment of defects such as interface and dislocation induced the energy storage. The stored energy released in the sintering process, which reduced the activation energy of vacancy and the activation energy of diffusion. So the sintering temperature was reduced and the structure, strength and hardness of specimens were improved.