Research focused mainly on Fe-based matrix composite (the wrapped diamond), used Fe powder to replace the expensive cobalt powder (Co-based matrix composite), and add the rare earth (RE) elements to reinforce the related physical properties of this Fe-based matrix composite for diamond tools. Conducted on the related matrix composite differential thermal analysis (DTA), in particular Fe-based matrix composite containing 35% iron powder (with RE or without RE) Were discussed for DTA and the package insert forces. DTA and the analysis is consistent with the empirical formula. By hot pressing the composite with diamond as the research object, having researched the relationship among the heat capacity (CP) at constant pressure and other related physical parameters (the package inserts force and E etc.). Take 35%Fe-based powder composite materials for diamond tools (with RE or without RE) as the research objiect, combining analysis of the problem for the porosity, and the densification, and the package inserts force, and the DTA tests, which the addition manner of rare earth, add form , and quantity are determined, so that the changes laws of DTA curve and heat capacity (CP) of Fe-based composite containing 35% iron powder( with the RE) are similar to the that of pure Co composites. Apply these laws to improve the hot pressing technology and mechanical properties of the diamond tools (bending strength, impact toughness, hardness and porosity) and so on