High carbon content iron base alloys (2–4 wt%) with various alloying additions,eg., Cr, Ni, Si or Te were produced in powder form by water atomisation. Depending on the alloying addition the powder particles solidify, microcrystalline with either dendritic or cellular microstructures with supersaturated solid solution and eutectic. The proportion of carbide is dependent on the composition and atomizing conditions. The powder, after suitable preparation, was consolidated by extrusion or hot isostatic pressing. The consolidation behaviour of the powders is influenced by the composition and particle size distribution. The microstructures and hardness values of the powder in the as quenched state are compared with those of the consolidated state with particular emphasis on the thermal stability. The mechanical properties of extruded powders are compared with those for hot isostatically pressed.