Ultrafine TiC-5%Co powders were synthesized by spray drying of aqueous solution of TiO slurry and cobalt nitrate, followed by calcination and carbothermal reaction. The oxide powders with carbon powder was reduced and carburized at under hydrogen atmosphere. During reduction, CO gas was mainly evolved by reducing reaction of oxides. Ultrafine TiC-5%Co powders were easily formed by carbothermal reaction at due to using ultrafine powders as raw materials. The ultrafine WC-TiC-Co alloy prepared by sintering of mixed powder of ultrafine WC-13%Co powder and ultrafine TiC-5%Co powder has higher sintered density and mechanical properties than WC-TiC-Co alloy prepared by commercial WC, TiC and Co powders