Unsaturated titanium hydride (TiHX) powder has high formability and is a promising raw material for titanium-based powder metallurgy. In this work, TiH2, TiHX, and HDH Ti powders were characterized, the cold compaction behavior of the powders was investigated, and the densification mechanism was analyzed. The TiHX was a three-phase mixture containing an α plastic phase and δ and ε brittle phases through Rietveld refinement. The TiHX compacts had compressive strength of over 420 MPa (higher than TiH2 and similar to HDHTi) and relative density of over 80% (higher than TiH2 and HDH Ti) at 600 MPa. The Gerdemann–Jablonski and Cooper–Eaton equation were used to simulate the powder compaction curves and describe powder compaction behavior. The plastic deformation of TiHX powder is greater than TiH2, and the particle rearrangement is greater than HDH Ti during cold compaction. Such compaction behavior of TiHX causes an excellent green-strength–relative-density combination.