A heat resistant and wear resistant iron-base sintered alloy to be used as the material of a valve seat and a valve face of an engine valve and a waste gate valve of a turbocharger for an internal combustion engine. The iron-base sintered alloy consists essentially of at least one of molybdenum and tungsten, ranging from 3 to 25% by weight, chromium ranging from 1 to 10% by weight, silicon ranging from 0.1 to 0.9% by weight, manganese ranging not more than 0.7% by weight, phosphorus ranging not more than 0.05% by weight, carbon ranging from 0.1 to 2.5% by weight, boron ranging from 0.5 to 2.0% by weight, intermetallic compound of TiAl ranging from 0.3 to 20% by weight, and balance including iron and impurities. In the sintered alloy, carbide, boride and/or carbide boride and TiAl are uniformly dispersed in the matrix, thereby strengthening grain boundary.