The failure of sintered steels differs from the behaviour of wrought steels because of factors such as porosity, remnants of previous particle surfaces and generally more complex microstructures. All these factors influence initiation, growth and propagation of microcracks when the sintered microstructure is mechanically loaded. Fracture paths and fracture resistance are shown to be related to details of the microstructures comprising ferrite, austenite, bainite, martensite, pores and weak interfaces. All these have characteristic fracture resistance properties resulting in, frequently combinations of, dimple rupture, cleavage, intergranular and interparticle failure micromechanisms. Results are presented of systematic studies, enabling identification of relevant stresses, in static and dynamic three-point loading, as the cracking process progresses. In static loading, microcracking has been detected in some steels below the macroscopic yield stress and in the first 100 cycles in fatigue. Microcracks nucleate, grow and coalesce, in a step-wise manner, before achieving a catastrophic sizefor which conventional fracture mechanics holds. Thus, application of Paris-type analysis to Stage II fatigue is therefore inappropriate. The review focuses on failure micromechanisms and interpretation of fracture surface composition of sintered steels, particularly of those based on Distaloy AE and Astaloy CrL powders. The relationships between microstructure and mechanical properties are discussed.