Nowadays, powder-based manufacturing processes are recognized as cost-efficient methods frequently employed for producing parts with intricate shapes and tight tolerances in large quantities. However, like any manufacturing method, powder-based technologies also have several disadvantages. One of the most significant issues lies in the degree of porosity. By modifying the morphology of the gas-atomized spherical 17-4PH stainless steel powder via prior ball milling and then raising both the pressure of cold compaction (1.6 GPa) and sintering temperature (1275 °C), the porosity could be reduced considerably. In our novel powder metallurgical (PM) experimental process, an exceptionally high green density of 92% could be reached by employing die wall lubrication instead of internal lubrication and utilizing induction heating for rapid sintering. After sintering (at temperatures of 1200, 1250, and 1275 °C), the samples aged in the H900 condition were then mechanically tested (Charpy impact, HV hardness, and tensile tests) as a function of porosity. Sintering at 1275 °C for one hour enabled porosity reduction to below 4%, resulting in 1200 MPa yield strength and 1350 MPa ultimate tensile strength with significant (16%) fracture strain. These values are comparable to those of the same alloy products fabricated via ingot metallurgy (IM) or additive manufacturing (AM).