The influence of artificial inclusions on tensile properties of iron-base sintered material with artificial inclusion is sudied experimentally and numerically. Stress and strain around inclusion have been examined by FEM. The microscopic observation of the initiation and growth of voids leading to macroscopic necking and subsequent ductile fracture has been carried out. The ultimate tensile strength depends on the interparticle spacing;which is function of volume fraction and particle size of inclusion. Initiation of a void at the interface between matrix and inclusion depends on the sort and size of inclusion. The onset of numerically predicted microscopic necking, internal necking, prior to the experimentally observed macrosoopic necking relates to the distance between inclusions which is depend on both of the volume fraction and grain size of inclusion.