Metal matrix-particulate composites fabricated by using powder metallurgy possess a higher dislocation density, a small sub-grain size and limited segregation of particles, which, when combined, result in superior mechanical properties. The present study aims to develop iron based silica sand nanoparticles composites with improved mechanical properties. An iron based silica sand nanoparticles composite with 5, 10, 15 and 20 wt. of nanoparticles silica sand were developed through powder metallurgy technique. It was observed that by addition of silica sand nanoparticles with 20 wt. increased the hardness up to 95HRB and tensile strength up to 690MPa. Sintered densities and electrical conductivity of the composites were improved with an optimum value of 15 wt. silica sand nanoparticles. Proposed mechanism is due to diffusion of silica sand nanoparticles into porous sites of the composites. © (2011) Trans Tech Publications, Switzerland.