The invention relates to the field of material welding, in particular to an iron-based powder alloy and an argon arc surfacing technology utilizing the same. The argon arc surfacing technology is characterized in that Fe-V, Fe-B and powdered graphite are made into sheets, and an argon tungsten-arc welding machine is used for realizing surfacing on low carbon steel or low alloy steel. The formation of weld seams is excellent without pores, included slag and cracks, and the dilution rate of a transition layer is small, therefore, the argon arc surfacing technology can be effectively used in a repair technology for parts such as moulds, gears, shaft ends and the like. An argon arc welding clad layer of Fe-V, Fe-B and powdered graphite has fine grain size, disperse distribution of compounds and molten surface hardness up to 60 HRC.