Abstract: A method of manufacturing a cermet having high toughness and high hardness, which exhibits excellent impact resistance and wear resistance when used in cutting tools. A mixed powder is prepared which consists essentially of: titanium nitride, from 25 to 50 percent by weight; titanium carbide, from 10 to 30 percent by weight; at least one selected from the group consisting of tantalum carbide, niobium carbide, and zirconium carbide, from 5 to 25 percent by weight; tungsten carbide, from 10 to 25 percent by weight; and at least one selected from the group consisting of Co and Ni, and Al if required, from 7.5 to 25 percent by weight in total. The above mixed powder is compressed into a green compact. The green compact is sintered in a nitrogen atmosphere under a pressure within a range from 0.1 to 100 torr, and at a temperature within a range from 1400.degree. to 1550.degree. C.