Herein, the effect of niobium pentoxide (Nb2O5) and nano-sized cerium oxide (CeO2) on oxidation behavior and area specific resistance (ASR) of the ferritic stainless steel has been investigated for the development of robust metallic interconnects. An oxide-dispersed ferritic stainless steel alloy is fabricated using the powder metallurgy (PM) process. The morphologies of the alloy before and after oxidation are observed through Scanning Electron Microscope (SEM), Scanning Transmission Electron Microscopy (STEM) and Secondary Ion Mass Spectrometry (SIMS) analyses. Addition of Nb2O5 in the alloy formed a C14 Laves phase of (Fe, Cr)2(Nb, Si). The Laves phase and CeO2 controlled the oxidation behavior of the ferritic stainless steels, consequently reducing the oxide scale thickness and improving the ASR. An alloy with 1 wt% Nb2O5 and 3 wt% CeO2 showed an ASR value of 27.1 mΩ cm2 at 800 °C for 1000 h, which is similar to the ASR value of the commercial Fe–Cr alloy. The results of this study indicate that Nb2O5 and CeO2-dispersed ferritic stainless steel using the PM process can be more advantageous than the conventional process for manufacturing metallic interconnects with complex shapes and reducing production costs.