Iron powders having average particle sizes of ~40µm are mechanically mixed thoroughly with aluminum powders ranging from 1 to 10 in wt.% with an average particle size of ~10µm. Two different powder metallurgical techniques cold and hot pressing are used to study the effect of the additive element powder on the mechanical properties, wear properties and the microstructure of the iron based alloys. The hot pressing technique was performed at a temperature up to 500°C at 445.6 MPa. The cold pressing technique was performed at 909 MPa in room temperature. By increasing the Al content to 10 wt. % in the base Fe-based matrix, the hardness was decreased from 780 to 690 MPa and the radial strength was decreased from 380 to 202 MPa with reductions of 11.5% and 40%, respectively. Improvement of the wear resistance with the increase addition of the Al powder to the Fe matrix up to 5 times was achieved compared to the alloy without Al addition for different wear parameters namely; wear time and sliding speed.