The efforts to increase the potential PM market [makes necessary to accept new challenges to develop new products. To address this question, we can consider modifying the pores system or the material composition and at same time, the cost of the alloying elements and the compromise between strength, tolerances and cost. The present study examines the sintering behavior and effect of manganese addition, both mechanically-blended and mechanically alloyed, on Cr-Mo low alloyed steels to enhance the mechanical properties. Mn sublimation during sintering results in some specific phenomena to occur which facilitate the sintering of alloying elements with high oxygen affinity. To benefit from the Mn sublimation effects, small Mn particles must be homogenously added in order to increase the specific surface available to sublimate. First, the milling time is optimized to attain a master alloy with 50% of Mn that is diluted in Fe-1.5Cr-0.2Mo water atomized prealloyed powder by normal mixing. These mixtures were pressed to a green density of 7.1 g/cm3 and sintered at 1120 °C in 90N2-10H2 atmosphere. The resulting mechanical properties and the microstructures are discussed considering the high energy stored in the master alloy which favors the mass transport mechanism during sintering.