The Tungsten-Molybdenum (W-Mo) alloyed layer was prepared on the surface of iron-based (Fe-based) powder metallurgy (PM) gear materials by double-glow plasma surface alloying technique (DG technique), and the microstructure and properties of the alloy layer were studied in the paper. The results indicate that the alloyed layer was homogeneous and dense, and the surface microhardness was 344 HV0.1. The nanohardness and elastic modulus of the alloyed layer were 7.7 GPa and 221 GPa, respectively, which are 2.02 times and 1.43 times greater than that of substrate. The friction coefficient and the specific wear rate of the alloyed layer with the load of 470 g is 0.537 and 2.57 × 10−5 mm3 · N−1 · m−1 respectively, which is 0.254 and 81.3% smaller than that of the substrate. The wear mechanism of the alloyed layer at low load was mainly slight abrasive wear. With increasing the load, the wear intensity of the alloyed layer was not as obvious as that of the substrate, which showed excellent wear resistance.