This study has examined the effects of nickel alloying additions on the microstructural characteristics and mechanical properties of Fe–xNi–0.85Mo–0.4C-base steels that were powder processed using double-press double-sinter processing to maximize density. The steels were examined in the as-processed condition as well as in a quench-and-temper heat treated condition. Tensile behavior indicates that while nickel content (at levels of 2,4, and 6%) increased tensile strength in the as-sintered condition, it did not significantly affect tensile strength in the quenched and tempered condition. In both conditions increasing Ni content decreased elongation to fracture. The 4% Ni steel, which tended to have the smallest maximum pore size, also exhibited the greatest fatigue strength.