Nanocrystalline tetragonal b-FeSe phase was prepared mechanochemically using ball milling procedures in an inert atmosphere, starting from Fe x Se powder mixtures with x ¼ 1.00, 1.25 and 1.50, with x ¼ 1.25 and 1.50 leading to more than 93% of pure phase after annealing at 400 C for 1 hour under vacuum. X-ray powder diffraction provides information on phase formation and phase transitions with milling time and temperature. The Rietveld method was used to refine the crystal structure, including the z coordinate of Se and occupancies, to determine the microstructure and to assess the amount of contaminant phases observed. Lattice contraction is found in the ab-plane more than along the c-axis, the small average size of crystalline domains (<22 nm) and the high microstrain (>1%) indicate the formation of highly strained nanoparticles. Magnetic and electrical characterization showed a poor superconductivity at 4 K and semiconducting properties only for thermally treated samples. These observations are explained by the presence of ferromagnetic impurity phases (residual Fe, hexagonal d-FeSe phase and monoclinic Fe 3 Se 4 ), but other effects caused by the mechanochemical synthesis must be considered, such as small average size, large/non-uniform size distribution and high microstrain of the nanosized tetragonal b-FeSe phase.The increase of the b-FeSe phase content with increasing storage time (ageing) above a few days to months in air, at RT and in the dark was observed for all as-milled samples. Preliminary data on the ageing effect are shown while a systematic study on this is in progress and will be presented elsewhere.