Powder metallurgical processing of β-type Ti alloys is an emerging approach for the production of compact or porous materials for bone implant applications which combine very low stiffness with suitable strength. Significant strength enhancement can be expected when ultrafine-grained material states are achieved in consequence of employing nanocrystalline starting materials for the powder compaction process. In the present study it is demonstrated that nanocrystalline (Ti,Nb)H2 with fcc CaF2 type crystal structure (Fm-3m) can be obtained via reactive milling of Ti and Nb in hydrogen atmosphere. (Ti0.75Nb0.25)H2 contains 3.2 wt% hydrogen which is completely desorbed below 700 °C in three steps. Thermal desorption treatment of the as-prepared nanocrystalline hydride powder leads to the formation of ultrafine-grained β-type Ti40Nb.