The effect of Ti and V additives on the microstructure and mechanical properties of microalloyed powder metallurgy (PM) steels is investigated. The microstructure of microalloyed PM steels is characterised with the help of optic microscope, SEM and EDS. The results showed that the addition of Ti and V elements has a beneficial effect on the improved mechanical properties. Ti–V microalloyed PM steels can be used to take advantage of improved grain refining propensity of titanium, whilst allowing vanadium to be used as dispersion strengtheners and to enhance the hardenability and transformation characteristics.