Accurate measurement of green density of compacted part in the powder metallurgy industry is rather fundamental but extremely important process that decide the quality of the sintered part. In case of green sheet P/M product, the green density as well as the distribution of the density must be examined for the same reasons. Currently in most cases, density measuring process is being performed applying conventional Archimedes principles. However this method is not only time-consuming but also often inaccurate because of the inherent nature of the process, such as part sectioning, closing of surface porosity with wax and weighing in air and in water. Therefore, it is necessary to develop a faster and more accurate method to measure the density of green sheet P/M product. In this work, a nondestructive density measurement device using gamma-ray absorption principles was constructed and the optimum condition for measuring green density of P/M sheet and its distribution was sought. The results showed that this method was very effective in terms of measuring time and accuracy.