The present study deals with development of iron based MMC employed for brake pads by ‘Hot Powder Preform Forging’ technique. The conventional technique i.e. Compacting and sintering for manufacturing metalloceramic brake pads was successfully and economically replaced by using above process. Higher density levels can be achieved by hot powder pre-form forging technique hitherto not possible by sintering route. The mechanical properties of these materials were characterized using ASTM standards. Compacting and sintering technology suffers from certain major limitations such as inadequate joining of friction element with backing plate, poor density levels achieved in friction element owing to limited application of pressure during compacting, poor thermal conductivity due to high levels of porosity in the product, poor strength due to segregation of the impurities along prior particle boundaries (PPB's), anisotropy in the strength of the product owing to preferred direction due of pressing, and, wide variations in final characteristics due to large number of variables involved. Besides above, cost of raw material and consumables along with heavy capital equipments makes this technique costly and only large scale production is possible where these costs are distributed in the large volume of production. In contrast to these limitations, the present technique can offer brake pads of much simpler chemistry but with improved performance on account of simultaneous application of pressure and temperature and with better control of variables.