Through development work at Quebec Metal Powders Ltd, boron nitride has opened a new avenue to improve the machinability of PM components. As a result of this work, a new machinable powder grade, ATOMET 29M, has been introduced to the PM industry. A series of machinability tests confirmed significant reductions in drilling thrust force as well as improvements in tool life, when compared to conventional powder grades. Moreover, the beneficial effect of boron nitride was retained even at high carbon content, thus extending the feasibility of performing efficient machining operations on high strength PM materials.