The current research reports the improvement in surface integrity and tribological characteristics of steel prepared using a powder metallurgy (PM) by ultrasonic nanocrystal surface modification (UNSM) at 25 and 300 °C. The surface integrity and tribological properties of three samples, namely, as-PM, UNSM-25 and UNSM-300 were investigated. The average surface roughness (Ra) of the as-PM, UNSM-25 and UNSM-300 samples was measured using a non-contact 3D scanner, where it was found to be 3.21, 1.14 and 0.74 µm, respectively. The top surface hardness was also measured in order to investigate the influence of UNSM treatment temperature on the hardness. The results revealed that the as-PM sample with a hardness of 109 HV was increased up to 165 and 237 HV, corresponding to a 32.1% and 57.2% after both the UNSM treatment at 25 and 300 °C, respectively. XRD analysis was also performed to confirm if any changes in chemistry and crystal size were took place after the UNSM treatment at 25 and 300 °C. In addition, dry tribological properties of the samples were investigated. The friction coefficient of the as-PM sample was 0.284, which was reduced up to 0.225 and 0.068 after UNSM treatment at 25 and 300 °C, respectively. The wear resistance was also enhanced by 33.2 and 52.9% after UNSM treatment at both 25 and 300 °C. Improvements in surface roughness, hardness and tribological properties was attributed to the elimination of big and deep porosities after UNSM treatment. Wear track of the samples and wear scar of the counter surface balls were investigated by SEM to reach a comprehensive discussion on wear mechanisms. Overall, it was confirmed that UNSM treatment at 25 and 300 °C had a beneficial effect on the surface integrity and tribological characteristics of sintered steel by the PM that is used in a shock absorber for a car engine.