Abstract: A method of tempering powdered metallurgical constructs, that includes first deoxygenating and dehydrating powdered metal compacts before tempering. During the process, the sintered compacts are first preheated to a temperature that desorbs water vapor and oxygen from interstitial spaces of the compact, while not accelerating the rate of oxidation of any metal component. Once deoxygenation and dehydration has been achieved, the compact is heated to a tempering temperature in a substantially oxygen and water vapor-free environment and is maintained at that temperature until tempering is complete. Substantially oxygen and water-vapor free environmental conditions are maintained while the tempered compacts are cooled, to avoid post-oxidation. The resultant tempered powdered metal devices have increased strength, ductility and better machinability than conventionally tempered constructs.