The distribution of the alloying element Cu in steel compacts is important in determining the properties of the sintered products. In this work, mixtures of Fe-2Cu and Fe-2Cu-0.5C were compacted at 600 MPa and sintered at 1120oC for the holding times of ts= 3, 13, 23, and 33 min. Dilatometry and light optical microscopy is used to investigate porosity, Cu distribution and its effect on the dimensional changes during sintering. The result shows that the molten Cu penetrates into the Fe interparticle and grain boundaries in less then 3 min holding time at 1120°C, however C addition hinders the liquid penetration of Cu. Furthermore, it is found that the C-added compact has lower volume expansion and porosity compared to the C-free system, after 33 min of holding time at 1120°C.