In an effort to find alternative routes for the production of sintered parts, induction sintering has been considered a promising candidate because it incorporates short production times. This study is a novel approach which explores the possibility of producing PM steel parts by means of induction sintering. In this work, green compacts from Distaloy-DH powder have been induction sintered at different temperatures and by varying the sintering time and atmosphere. The role and behavior of lubricant and graphite additions during the process were also examined. Conventional sintering was also performed for comparison. Results from the microstructural investigation show complete dissolution of both the diffusion-bonded Cu and the admixed graphite during sintering. Induction sintered samples showed improved mechanical properties which were confirmed by fractographic investigation. The study shows that by careful adjustment of the different sintering parameters it is possible to acquire high performance PM parts through the induction sintering route.