Fe-reinforced composites were manufactured by the addition of 10-20 wt.% NbC or TaC particles aiming at improved mechanical and wear behavior. Two varieties of Fe powders from Hoeganaes Corp. were used, Ancorsteel 1000B and 45P. Composites produced using the former variety included a small amount of Fe3P to induce liquid-phase sintering whereas 45P powder was pre-alloyed with P by the manufacturer. The hardness of the matrix was adjusted adding carbon to the composite mixture. The powders were milled for different times and annealed prior to pressing. A dilatometric study was carried out under hydrogen to establish optimum sintering profiles. Relative densities up to 97% TD were achieved. Both microstructure and density of the sintered pellets were evaluated in order to establish correlations involving composition, processing parameters and microstructure of the composite.