This study addresses the fabrication of nanocrystalline Fe-Co-Ni alloy using two operations: mechanical alloying (MA) of elemental powders and hot pressing (HP). The evolution of the phase composition and structure of the powder particles after MA was investigated. Ball milling with rotation speed 700 rpm for 15-20 min allows the production of a bcc Fe-based supersaturated solid solution. During the HP of this powder, this solution decomposes into a bcc (Fe) solid solution and fcc Fe 3 Ni precipitates, which act as a recrystallization barrier at elevated temperatures. This factor, along with the solid solution strengthening of the (α-Fe) matrix and high concentration of lattice defects (dislocations and twins), provides high mechanical properties (ultimate bending strength of 2000 MPa and hardness of 108 HRB) and wear resistance of the alloy. The developed Fe-Co-Ni alloy is promising for use as a binder in diamond tools designed for machining abrasive materials.