In this research, the microstructure and mechanical properties of Fe–1.8Ni–0.5Mo–2Cu–0.45C powder metallurgy (PM) steels with 0–0.3% vanadium were investigated by optical microscopy, scanning electron microscopy, transverse rupture, hardness and tribological tests. It is revealed that the volume fraction of polygonal ferrite in the sintered PM steels increased with the increasing of V addition, and more fine V(C,N) particles were formed during the sintering process. The enhancement of transverse rupture strength of the sintered and heat-treated PM steels with V addition was due to the grain refinement and precipitation strengthening effect. The friction coefficient the heat-treated steels decreased with an increase in V addition, whereas the wear loss increased.