Abstract This study focuses on converting iron particles from grinding sludge, after removing impurities, into Fe-nanoparticles using high-energy ball billing. The goal is to examine the corrosion behaviors and mechanical properties of these Fe-nanoparticles. Nanostructured Fe-powder was synthesized through a process involving 10 h of high-energy ball milling, followed by conventional hot pressing and sintering. Structural and microstructural properties were thoroughly examined using techniques such as X-ray diffraction (XRD), optical microscopy, scanning electron microscopy (SEM), transmission electron microscopy (TEM), and elemental diffraction spectroscopy. Upon sintering, SEM and TEM analyses unveiled the formation of a nanostructured alloy within the samples. Notably, the milled sample exhibited high hardness value, measuring at 155 HV. However, it is noteworthy that the un-milled sample demonstrated superior compression strength compared to its milled counterpart. Furthermore, the corrosion behavior of the samples was evaluated through electrochemical corrosion studies. Interestingly, the sample subjected to 10 h of milling (coin number 5) displayed a significantly lower corrosion rate, measuring at 1.3921 mm/year, suggesting enhanced corrosion resistance attributed to the nano structuring process.