Co-0.5C-(15~20)Cr-20Ni-8W-(2~7)Fe alloy bond in diamond-impregnated abrasive tool was synthesized by ball-milling and mechanical alloying process. When the powders were mechanical alloyed for 6h, micro-welding in most metal powders was observed irrespective of addition of stearic acid. Without stearic acid in metal powders, partial-ly coarse powders were obtained, which could be unfaverable to the densification of composite of composite powders. The hot-pressed compacts showed rupture strength of 1100MPa and hardness of about $46H_{RC}$, respectively.