Due to environment-friendly nature, water-soluble binder systems have received much attention in recent years. Polyethylene glycol (PEG) and polymethyl methacrylate (PMMA) binder system is one such example and has been widely reported in the literature. In this paper, a comprehensive investigation of PEG/PMMA binder system has been carried out. Feedstocks were made using stainless steel 17-4PH powder, and subsequently, conventional and micrometal injection moulding (μMIM) processes were carried out. Differential scanning calorimetry (DSC) and fracture surface analysis of moulded samples were performed for complete evaluation. It was found that despite great potential, there are certain drawbacks associated with this binder system. The main problem is the formation of shrinkage voids during solidification. It is proposed that this binder system is more suitable for μMIM process that has an inherently higher cooling rate.