In this study, the alloying of stainless steels with various sulfur contents is investigated to obtain steel powders with significantly reduced mean diameters without changing the operational parameters of the atomizing unit. The steels are produced in a VIM12 furnace and atomized on a VIGA‐1B setup with high‐pressure argon. The desired reduction in the mean diameter is attributed to the decrease in surface tension with increasing sulfur content, which is in good agreement with previous findings. A transition from a positive to a negative thermal gradient of the surface tension is observed, along with a shift to higher temperatures with increasing sulphur concentration. In addition, the chemical assessment of the powders reveals a lower evaporation of manganese and a reduced increase in nitrogen content with increasing sulfur content. The sphericity and flowability are not affected by the addition of sulfur. Viscosity and density measurements are also conducted to characterize the steels thoroughly. Scanning electron microscopy reveals the presence of manganese sulfide, which was submicron in size and well distributed. Iron sulfides, mostly attributed to hot shortness, were not observed, which was also confirmed by thermodynamic modeling using Thermo‐Calc software.