The present study is to analyze the thermoelectric properties of $Bi_{0.4}Sb_{1.6}Te_3$ thermoelectric materials fabricated by the mechanical grinding process. The $Bi_{0.4}Sb_{1.6}Te_3$ powders were prepared by the combination of mechanical milling and reduction treating methods using simply crushed pre-alloyed $Bi_{0.4}Sb_{1.6}Te_3$ powder. The mechanical milling was carried out using the tumbler-ball mill and planetary ball mill. The tumbler-ball milling had an effect on the carrier mobility rather than the carrier concentration, whereas, the latter on the carrier concentration. The specific electric resistivity and Seebeck coefficient decreased with increasing the reduction-heat-treatment time. The thermal conductivity continuously increased with increasing the reduction-heat-treatment time. The figure of merit of the $Bi_{0.4}Sb_{1.6}Te_3$ sintered body prepared by the mechanical grinding process showed higher value than one of the sintered body of the simply crushed powder.