Abstract: Pure Cr₂O₃ (account valume 1% chromium) and iron powder were mxied and then reduced with commercial hydrogen.The reduction reaction was beginning at about 800℃ and completely finishing at 1050℃. Thermodynamics was considered to analyse the reduction conditions of Cr₂O₃ which was mixed with large amounts of iron. The effects of PH₂O in hydrogen and the concentration of chromium in iron on the reduction temperature were calculated. The feasibility of using chromium as an alloying element in powder metallurgy can be illustrated theoretically and experimentally.