A process for producing ferrous sintered alloy according to the present invention is characterized in that it is equipped with: a compaction step of pressure compacting a raw-material powder in which an Fe-system powder is mixed with a reinforcement powder, thereby turning the raw-material powder into a powder compact; and a sintering step of heating this powder compact in an oxidation preventive atmosphere, thereby sintering the powder compact; and said reinforcement powder is an Fe—Mn—Si—C powder comprising an Fe alloy or an Fe compound that includes: Mn in an amount of from 58 to 70%; Si in an amount making a compositional ratio of the Mn with respect to the Si (i.e., Mn/Si) that is from 3.3 to 4.6; and C in an amount of from 1.5 to 3%; when the entirety is taken as 100% by mass. This Fe—Mn—Si—C powder is procurable inexpensively relatively; besides, ferrous sintered alloys, which are obtained using that, are better in terms of various characteristics than are conventional ferrous sintered alloys. Therefore, it is possible to intend to turn Cu-free ferrous sintered alloys, which are good in terms of their own characteristics, into low-cost ones.