The semiconducting beta-FeSi_2 compound has been recognized as a thermoelectric material with excel-lent oxidation resistance and stable characteristics at elevated temperature. In the present work, we applied mechanical alloying(MA) technique to produce beta-FeSi_2 compound using a mixture of elemental iron and silicon powders. The mechanical alloying was carried out using a Fritsch P-5 planetary mill under Ar gas atmosphere. The MA powders were characterized by the X-ray diffraction with Cu-K alpha radiation, thermal analysis and scanning electron microscopy. The single beta-FeSi_2 phase has been obtained by mechanical alloying of Fe_33Si_67 mixture powders for 120 hrs or for 70 hrs coupled with the subsequent heat treatment up to 700°C. The grain size of beta-FeSi_2 powders analyzed by Hall plot method was 44nm.