Stress-strain curves are fundamental properties to study characteristics of materials. Flow stress curves of the powder materials are obtained by indirect testing methods, such as tensile test with the bulk materials and powder compaction test, because it is hard to measure the stress-strain curves of the powder materials using conventional uniaxial tensile test due to the limitation of the size and shape of the specimen. Instrumented nanoindentation can measure mechanical properties of very small region from several nanometers to several micrometers, so nanoindentation technique is suitable to obtain the stress-strain curve of the powder materials. In this study, a novel technique to obtain the stress-strain curves using the combination of instrumented nanoindentation and finite element method was introduced and the flow stress curves of Fe powder were measured. Then obtained stress-strain curves were verified by the comparison of the experimental results and the FEA results for powder compaction test.