Abstract: The Fe-2Cu-xMo-0.8C (x changes between 0.2wt%-1.2wt%) alloys were prepared by powder metallurgy and the effect of molybdenum addition on the microstructure and mechanical properties of the alloy was investigated. The results show that with the increase of molybdenum addition, the sintered density, tensile strength and elongation of the alloy firstly increased then decreased, and reached the maximum value of 6.9 g·cm-3, 318 MPa, 3.9% respectively with molybdenum addition of 0.8wt%, and then obtained excellent comprehensive performance. Molybdenum can promote the densification of Fe-0.5Mn-0.5C compacts. The porosity of the sintered body decreased with the increase of molybdenum addition.