Commercial pure iron powder and iron powder of coated 0.45% phosphorus were mixed with graphite powder in dry mixer to control carbon content from 0 wt% to 0.8 wt%. Mixed powder was pressed in the mould under the pressure of 510 MPa. Compacts were sintered at 118$0^{circ}C$ for 40 min. in cracked ammonia gaseous atmosphere. Some of these sintered specimens were quenched in oil, and tempered in Ar gas. All of these specimens were investigated for microstructure, density and hardness in relation to coated phosphorus and carbon content. The results obtained were as follows: (1) The microstructure of the sintered speciments revealed that the amount of pearlite was increased with increasing C content but decreased by P-addition. (2) The P-addition affected the microstructure of pores in which the pore shape became round and its mean size was decreased by P-addition. (3) After tempering of sintered specimens the structure of pearlite was changed from fine structure to coarse one in P added specimen. (4) Hardness was higher in P added specimens.