Powder Metallurgy is an efficient manufacturing process for the production of gearing and similar net shape components. Because of limitations arising from the inherent porosity and limited alloy systems available, the traditional uses for P/M gearing was in relatively low stress applications. The recent introduction of new compaction techniques and new alloy materials has produced P/M components with significantly higher yield and tensile strengths approaching the strength levels of wrought gearing materials. This paper will review the new P/M processes and materials and their suitability for gear type applications. Mechanical property comparisons will be made to the common automotive gearing materials including ductile and malleable cast irons and wrought low alloy steels.