Powder metallurgy (P/M) is a precision metal forming technology for producing simple or complex parts to net shape or near net shape with little@ if any machining. The mechanical properties of P/M materials are a direct function of density@ composition@ and microstructure. A systems approach to material and process selection permits the development of a microstructure suitable for the intended application. The technology as related to gear design and applications is reviewed. New materials and process technologies are reviewed for the comparability of P/M steel gears with cast or wrought steel. The strengths and weaknesses of the powder metallurgy process are examined@ along with the challenges facing the industry.