The effect of steam treatment on the physical properties of powder metal parts was studied. Steam treatment increases the weight, size, density, and hardness of the parts. The strength measured in tests of standard transverse rupture specimens is not significantly affected by steam treatment. However the ductility, as measured by the deflection, is decreased after steam treatment. Part crush load can be, depending on the configuration, significantly decreased or slightly increased. Steam treatment is most effective in the first half hour. The effect of further increasing steam treatment time is not significant.