Powder metallurgy technique has been extended in automobile industry and other engineering applications. Competitive manufacturing costs have led to important innovations in different fields of powder metallurgy. Recently, research has been focused on reaching higher performance at a lower cost. Carbon nanostructures as carbon nanofibres (CNF) have also entered in the material science as reinforcing composites. In this study, different materials formed by low alloy steel Fe-Ni-Mo powder (Distaloy AQ) with 0.4% of graphite and 0.5% CNFs (carbon nanofibres) synthesised at 723, 773, 823 and 873 K have been studied. All the materials were compacted at 700 MPa and sintered at 1393 K and 90N 2 -10H 2 atmosphere. The influence of CNFs synthesis temperature has been analysed for its application in powder metallurgy. The microstructure, mechanical properties such as tensile strength, elongation, hardness, density and wear behaviour were investigated. The CNFs synthesised at 873 K promoted better mechanical properties.