NiFe-CNT and Ni3Fe-CNT nanocomposites were fabricated by high energy mechanical alloying method. X-ray diffraction (XRD) analysis, scanning electron microscopy (SEM) and optical microscopy were employed for evolution of phase composition, morphology and microstructure of the powder particles. Ball milled powders were heat treated at 500 degrees C for 1 h to release the milling induced stresses. Bulk samples were prepared by sintering of cold pressed (300 MPa) samples at 1040 degrees C for 1 h. XRD patterns of powders, as-milled and after annealing at 500 degrees C did not show any peak related to CNTs or excess phases due to the interaction between CNTs and matrix. SEM micrographs showed that the addition of CNTs caused a reduction of powder particles size. The hardness value of as-milled NiFe and Ni3Fe powders reach to 660 and 720 HV, respectively. According to optical microscopy evaluations, the amount and size of the porosities of the composites bulk samples decreased in comparison with matrix ones. (C) 2011 The Society of Powder Technology Japan. Published by Elsevier B.V. and The Society of Powder Technology Japan. All rights reserved.