A new fabrication route and its process parameters about the steel bonded titanium carbide had been investigated. The effect and mechanisms of hydroxy iron powder and Fe-RE alloy on the mechanical properties and microstructure of steel bonded TiC had also been investigated in this dissertation. The result showed that the best route is planetary milling (4h) - CIP (2. 5t/cm2) - sintering in vacuum at 1410. Compared with conventional P/M method, the route can obtain steel bonded TiC with a higher density and better mechanical properties. The Hydroxy iron powder can improve the pressibility and sintering properties. Because the rare earth Ce and La have active chemistry characteristics and can decrease the surface tension force of the liquid iron , the addition of Fe-RE can increase the density and bending strength of steel bonded TiC by means of deoxidization and desulfurization, changing the distribution and existing state of impurity, improving liquid retouching properties and refining grain.