Dry sliding wear behavior of Fe + 0.3% graphite powder metallurgy processed (PM) steels was investigated at constant sliding speed, load and distance. For this purpose, atomized iron powder was mixed with 0.3% graphite powder and sintered at 1200 °C for 30 min under Argon gas atmosphere. The sintered PM specimens were intercritically annealed at different temperatures (728 and 760 °C) and then water-quenched. After sintering, a typical ferrite + pearlite microstructure was obtained. In the microstructure of the intercritically annealed PM specimens, a ferrite + martensite microstructure was produced. After wear tests, it was seen that the wear rate of the intercritically annealed specimens was very low in comparison to as-sintered specimen. The specimen intercritically annealed at 728 °C showed the lowest wear rate, despite its lower martensite volume fraction. © 2006 Elsevier Ltd. All rights reserved.