Composite-type alloyed steel powder has drawn great attention in recent years in forming high-strength sintered metal. The powder consists of iron and additions of nickel and molybdenum which adhere to the surface of the iron particles. This type of sintered alloy steel causes excessive wear of tool during cutting. The purpose of this study is to improve the machinability of the sintered alloy steel by adding nonmetallic materials. Experiments show that the addition of 3% glass to the sintered alloy steel increases tool life by 100 times. In order to clarify the mechanisms of the increase of tool life, the worn face of the cutting tool is examined using an electron probe microanalyzer (EPMA). The analysis shows that the glass additive acts as a protective film and lubricant during cutting with silicon nitride and tungsten carbide tools, respectively.