Abstract: Taking 12Cr-0. 5Ti-1W gas atomized powders and nona-Y₂O₃ as pre-alloyed powders, 12Cr oxide dispersion strengthened (ODS) ferritic steel was fabricated by mechanical alloying (MA) and hot isostatic pressing (HIP). The properties of the ferritic steel were improved by forging and heat treatment. Nano-oxide particles were observed in the microstructure by transmission electron microscopy, and these precipitated particles were identified to be Y-Ti-O complex compounds by energy dispersive X-ray spectroscopy. The mechanical properties of the ferritic steel were analyzed by tensile strength test and ultrasonic non-destructive test.