A high nitrogen PM tool steel has shown to have an excellent galling resistance due to the introduction of a high amount of a low friction phase predominantly consisting of VN. Tool making and heat treatment are according to standard procedures. An increase of tool life of more than two times compared to ordinary tool steels is found. Furthermore, the new low friction tool steel shows a potential for sintered parts with higher densities through the applica bility of increased compaction pressure or minimized lubricant amount.