Abstract: A heat resistant and wear resistant iron-based sintered alloy for use as the material of an engine component part which is subjected to severe temperature and wear conditions. The iron-based sintered alloy is comprised of a matrix formed of metal powder having the composition of alloy steel or high speed tool steel. An additional metal component formed of hard alloy powder is dispersed in the matrix in an amount ranging from 3 to 50% by weight of the matrix. The hard alloy powder contains as major components iron, molybdenum and silicon which improve the wetting property of the hard alloy powder with the matrix and form intermetallic compounds which are high in hardness and excellent in heat and oxidation resistances.