Fe-based oxide dispersion strengthened (ODS) powders were produced by high energy ball milling, followed by spark plasma sintering (SPS) for consolidation. The mixed powders of 84Fe-14Cr-$2Y_2O_3$ (wt%) were mechanically milled for 10 and 90 mins, and then consolidated at different temperatures ($900{sim}1100^{circ}C$). Mechanically-Alloyed (MAed) particles were examined by means of cross-sectional images using scanning electron microscopy (SEM). Both mechanical alloying and sintering behavior was investigated by X-ray diffraction (XRD) and high resolution transmission electron microscopy (HR-TEM). To confirm the thermal behavior of $Y_2O_3$, a replica method was applied after the SPS process. From the SEM observation, MAed powders milled for 10 min showed a lamella structure consisting of rich regions of Fe and Cr, while both regions were fully alloyed after 90 min. The results of sintering behavior clearly indicate that as the SPS temperature increased, micro-sized defects decreased and the density of consolidated ODS alloys increased. TEM images revealed that precipitates smaller than 50 nm consisted of $YCrO_3$.