In the present experimental work, the effects of vanadium additions on the microstructures and mechanical properties of powder metallurgy (PM) steel and microalloyed powder metallurgy (PM) steels were investigated. The microstructures of the PM steel and microalloyed PM steels were characterized by optic microscope, SEM and EDS. Experimental results showed that vanadium microalloyed steels can be produced by PM technology. The addition of vanadium limits grain growth during austenitization prior to air cooling and increases the strength in the sintered conditions. By limiting austenite grain growth, the precipitates result in significant improvement in strength.