Forging of steel powder preform has aroused considerable Interest In recent years in automobile industries for manufacture of bearing races, connecting rods, pinion gears, etc. A component made this way can be heat treated to the strength level of wrought steel. It has much less fibering than a normal wrought material which results in better transverse properties leading to increased service life.The present paper reports the results of systemetic investigation on the Influence of chromium & molybdenum addition on the densification, forgeability and strength of low carbon steel powder preforms under varying compacting pressures. The work has also been carried out on a steel powder preform of composition En 351/353 produced from mixture of elemental powders. These steels find applicatiosssn in the manufacture of differential gears, gudgeon pin, pinion, etc for automotive industries. The percentage reduction in height till fracture during upset test on 150 ton hydraulic press was taken as criterion for evaluating forgeability. The die filling ability of the sintered compacts was also evaluated under varying compacting pressure.