An oxide dispersion strengthened (ODS) ferritic steel with nominal composition Fe-14Cr-5Al-3W-0.4Ti-0.25Y 2 O 3 -0.6ZrO 2 was produced by mechanical alloying (MA), based on a prealloyed grade Fe-14Cr-5Al-3W steel with the addition of Ti element, Y 2 O 3 and ZrO 2 , and subsequent consolidation by means of field assisted hot pressing (FAHP). The microstructure and the mechanical properties were analyzed and compared with a reference material with nominal composition Fe-14Cr-5Al-3W-0.4Ti-0.25Y 2 O 3 . The addition of zirconia increased the volume fraction of the smallest and equiaxed ferritic nano-grains and decreased the quantity of larger aluminum nano-oxides within the ferritic matrix, promoting the formation of fine zirconium nano-oxides and leading to the enhancement of the mechanical properties of the alloy.