The production of nano-sized primary cementite in bainite/martensite matrix (NCBM) microstructure was designed to improve the dry sliding wear properties of high carbon PM parts. A different heat treatment cycle was carried out for the production of novel the NCBM microstructure. High purity iron powder 1.5 wt%. natural graphite powder was added and it was compacted in the form of a dry sliding wear test specimen in a mold and sintered at 1200 °C in a pure Ar gas atmosphere. The novel NCBM microstructure in the PM material was produced by quenching at 950 °C, then annealing at 600 °C for 12 min, then quickly cooling from 730 °C to 250 °C in a salt bath and keeping it isothermal for 100 s. The friction coefficient of materials with NCBM microstructure was less than other samples. It was found that while the wear coefficient were higher in the tempered martensitic microstructure sample having higher hardness, they were less than in the sample having bainitic/martensitic microstructure with similar hardness.