The introduction of ceramic particulate into metallic powder will unavoidably lower the compressibility and formability of the mixed powder. In this study, warm compaction, which is a simple and low cost technique to produce high density PM parts, was introduced in preparing composite. The aim of this paper is to prepare the warm compacted NbC particulate reinforced Fe-based composite, then study its tribological behavior and application in the valve-guide cup. A 15 wt.% NbC reinforced iron-based composite was prepared. It possesses a relative density of 98%, a tensile strength of 515 MPa, a hardness of HRC 58 and a remarkable tribological behavior.