Iron-based surface composites were fabricated with Fe-based metamorphic alloy powders and VC powders by high-energy electron beam irradiation, and the correlation of their microstructure with hardness and fracture toughness was investigated. Mixtures of metamorphic powders and VC powders were deposited on a plain carbon steel substrate, and then the electron beam was irradiated on these powders without flux, to fabricate surface composites. The composite layers 1.3 to 1.8 mm in thickness contained a large amount (up to 47 vol pct) of hard Cr 2 B and V 8 C 7 particles formed in eutectic colony regions and inside colonies, respectively. The hardness of the surface composites was approximately 2 to 4 times greater than that of the substrate because of Cr 2 B and V 8 C 7 particles. According to the microfracture observation of the composite fabricated with mixing 30 wt pct VC powders, microcracks initiated at coarse V 8 C 7 particles ins inside colonies as well as at Cr 2 B particles in colony regions, and were connected with other microcracks in a zigzag shape. Thus, it showed a higher fracture toughness and hardness twice as high as the composite fabricated without mixing VC powders.