The effect of sintering conditions on the austenite stability and strain-induced martensitic transformation of nanocrystalline FeCrC alloy is investigated. Nanocrystalline FeCrC alloys are successfully fabricated by spark plasma sintering with an extremely short densification time to obtain the theoretical density value and prevent grain growth. The nanocrystallite size in the sintered alloys contributes to increased austenite stability. The phase fraction of the FeCrC sintered alloy before and after deformation according to the sintering holding time is measured using X-ray diffraction and electron backscatter diffraction analysis. During compressive deformation, the volume fraction of strain-induced martensite resulting from austenite decomposition is increased. The transformation kinetics of the strain-induced martensite is evaluated using an empirical equation considering the austenite stability factor. The hardness of the S0W and S10W samples increase to 62.4-67.5 and 58.9-63.4 HRC before and after deformation. The hardness results confirmed that the mechanical properties are improved owing to the effects of grain refinement and strain-induced martensitic transformation in the nanocrystalline FeCrC alloy.