Recently developed products for industry, must have suitable mechanical properties, in order to fulfill the expectations of designers and manufacturers. For this reason, the Colombian industry is looking to implement and develop processes such as powder metallurgy to produce mechanical elements with these properties. With this research, it has been developed a characterization process of a ceramic metal composite material, Iron – Yttrium oxide, by analyzing composition, particle size, particle dispersion and mechanical properties. This in order to have adequate knowledge to achieve the hardening of the metal by oxide dispersion and at the same time to retain its formability.