We investigated the mechanism how the high green density can be provided during die lubricated warm compaction (WD). We observed and analyzed the densification processes of iron powders including different contents of an inner lubricant, and measured the lateral pressure at the die wall during WD in comparison with conventional compaction and warm compaction. As a result, the high density in WD was due to not only the particles-deformation enhanced by warming powders but also the particles-rearrangement promoted by reducing an amount of the inner lubricant rather than the die lubrication.