In this present work effect of temperature and graphite contents on the microstructural and mechanical properties of iron based powder metallurgy freeform was studied. The different graphite (carbon 98%) contents (0%, 2%, 5% and 10%) were mixed in iron powder and compact them in 100 KN. These specimens were sintered at 700⁰ C, 850⁰ C and 1000⁰ C in muffle furnaces. Microstructural properties were evaluated using scanning electron microscopy. Experimental results were compared to determine to best combination of graphite and iron powder preform. Maximum density was found between the range 2% to 5% graphite contents and temperature at 850⁰C.At graphite contents increases from 0% to 2%, the microstructure of the iron-based powder sintered specimen changes gradually from ferrite and a small amount of pearlite to pearlite, after 2% of graphite contents the microstructure was found pearlite and ferrite. As graphite increase up to 5% gray cast iron structure and at 1000⁰ C temperature range white cast iron structure found on the surfaces.