In the upcoming years, a reduction in the use of critical elements, such as Ni and Cu, with unstable prices and high demand from the electromobility sector will become increasingly important for the PM-industry. Cr-alloyed sintered steels offer attractive properties at a moderate cost, but so far mostly Cr-prealloyed grades have been used. This work analyses the microstructural homogenisation process when Cr is introduced as admixed elemental powder. It is shown howdue to its high carbon affinity -Cr particles act as 'internal carbon-getters'. There is an intermediate 'heterogenization' of the microstructure, i.e. the iron matrix is decarburised due to the formation of (Cr, Fe)-carbides. Final homogenisation depends on the formation of a transient liquid phase through the eutectic reaction between carbides and the iron matrix. Thus, the microstructure is not only sensitive to aspects such as sintering temperature or Cr-particle size but also to the heating rate and small variations in nominal carbon.