Fabrication of Fe_3AlC (χ-phase) monolithic material and χ matrix in-situ composite, having a Fe-Al alloy as a second phase, were fabricated by using mechanical alloying and vacuum hot pressing and also arc melting method was used to fabricate coarse grain size material. The compacts showed almost full density. We investigated the microstructural and mechanical properties of the consolidated materials with comparing arc melted materials. Especially, high temperature deformation properties were evaluated. The (χ+FeAl) compact obtained from 1800ks milled powder has an average particle size less than 1μm. The compact showed HV746, which was higher than that of the arc melted χ monolithic material, HV603. And the compact showed high 0.2% proof stress, 2.3GPa, at room temperature and then decreased rapidly with increasing testing temperature.