Oxide-dispersion-strengthened (ODS) steel is considered as a promising candidate structural material for nuclear applications. In this study, the microstructure and mechanical properties of Y4Zr3O12-added Fe–13.5Cr–2W ODS steels, containing high contents of C and N, prepared by mechanical alloying (MA) and two-step spark plasma sintering (SPS), were investigated. The results showed that pure Y4Zr3O12 powders, with a grain size of 3.5 nm, were well prepared with NH3·H2O addition by the sol-gel method in advance, in order to avoid the formation of some coarse or undesired oxides. W was completely dissolved into the matrix after 48 h of ball milling at 300 rpm, and the main elements were uniformly distributed on the surface of the milled powders. The unexpected face-centered cubic (FCC, γ)/body-centered cubic (BCC, α) dual-phase structure of the sintered specimens, could be explained by the unexpectedly high contents of C and N from the raw powder production process, fast-sintering characteristic of SPS, and inhibitory effect of W on the diffusion of C. The experimental results were approximately consistent with the simulation results from the Thermo Calc software. The temperature combination of 800 °C and 1100 °C during the SPS process, provided a relatively more homogeneous microstructure, while the combination of 750 °C and 1150 °C, provided the highest ultimate tensile strength (UTS), of 1038 MPa, with the highest uniform elongation (UE), of 6.2%. M23C6, Cr2O3, M2(C,N), and other precipitates, were mainly distributed at grain boundaries, especially at the triple junctions, which led to Cr depletion at grain boundaries.