The mechanical properties of ferrous powder metallurgy (P/M) materials are directly related to their microstructure. Ferrous P/M materials with sufficient hardenability will develop microstructures containing significant percentages of martensite in the as-sintered condition. Recently, sinter-hardening has developed into a highly cost effective production method through hardened P/M parts without the need for additional heat-treatments. This paper reviews the advances of sinter-hardening as well as some key processing parameters such as sintering temperature, cooling rate, tempering required to produce high quality sinter-hardened components. Specific topics including effect of alloying elements, alloying methods, and the Characterization and observation of microstructure are discussed.