Pure Ti, TiN and graphite powders were mechanically alloyed to synthesize Ti(C,N) powder with nanocrystalline microstructure. The effect of milling variables on the synthesizing behavior of the powders was investigated. As a result of milling, nano Ti(C,N) phase was synthesized by mechanical alloying. After that, Ti(C,N)-based cermets were fabricated with the powders as raw ceramic materials. It was found that the grain size was affected by the content of mechanical alloyed (MAed) Ti(C,N). The grains of the cermet with suitable MAed Ti(C,N) powder were smaller than that of the typical cermets prepared from the commercial powders, and the rim phase surrounding the hard core was also complete. As a result of this, the transverse rupture strength and hardness of the cermets were improved.