In the present work, we use multiwall carbon nanotubes (MWCNT) as the starting material for the fabrication of sintered carbon steel. A comparison is made with conventionally sintered carbon steel, where graphite is used as the starting material. Milling is performed using a horizontal mill sintered in a vacuum furnace. We analyze the grain size, number of pores, X-ray diffraction patterns, and microstructure. Changes in the physical properties are determined by using the Archimedes method and Vickers hardness measurements. The result shows that the use of MWCNTs instead of graphite significantly reduces the size and volume of the pores as well as the grain size after sintering. The addition of Y₂O₃.to the Fe-MWCNT samples further inhibits the growth of grains.