A sintered alloy is produced from mixed powder containing first hard particles, second hard particles, graphite particles, and iron particles. The first hard particles are Fe—Mo—Ni—Co—Mn—Si—C-based alloy particles, the second hard particles are Fe—Mo—Si-based alloy particles, the mixed powder contains 5 to 50 mass % of the first hard particles, 1 to 8 mass % of the second hard particles, and 0.5 to 1.5 mass % of the graphite particles, when total mass of the first hard particles, the second hard particles, the graphite particles, and the iron particles is set as 100 mass %.