The effects of compaction pressure and sintering temperature on the densification of Fe-40wt%Ni alloy nanoparticles were analyzed. The Fe-Ni nanoparticles were fabricated by an arc-discharge method and then, compacted at three different pressures and sintered at 550 to . Densification was completed at temperature as low as and high-pressure compaction was found to enhance densification. Densification behaviors and microstructure developments have been investigated through density measurements, electron microscopies, and hardness measurements.