In the present study, we have investigated the effect of sintering process conditions on the stability of the austenite phase in the nanocrystalline Fe-5wt.%Mn-0.2wt.%C alloy. The stability and volume fraction of the austenite phase are the key factors that determine the mechanical properties of FeMnC alloys, because strain-induced austenitemartensite transformation occurs under the application of an external stress at room temperature. Nanocrystalline Fe- 5wt.%Mn-0.2wt.%C samples are fabricated using the spark plasma sintering method. The stability of the austenite phase in the sintered samples is evaluated by X-ray diffraction analysis and hardness test. The volume fraction of austenite at room temperature increases as the sample is held for 10 min at the sintering temperature, because of carbon diffusion in austenite. Moreover, water quenching effectively prevents the formation of cementite during cooling, resulting in a higher volume fraction of austenite. Furthermore, it is found that the hardness is influenced by both the austenite carbon content and volume fraction.