In this paper, the correlation between structural and mechanical properties of nanostructured austenitic oxide dispersion strengthened (ODS) steel prepared by powder metallurgy were studied. High efficient milling process was applied to achive an optimal dispersion of ceramic oxide particles in the steel matrix. The austenitic powder with or without Y2O3 addition was milled by two different milling process (wet and dry). Spark plasma sintering as a fast and effective compaction method was used as sintering equipment. The morphology and structural properties of ODS were studied by X-ray diffraction and scanning electron microscopy. Mechanical properties, such as microhardness, bending strength and modulus of nanostructured ODS were also determined.