The present study aims to develop silica sand nanoparticles using the ball-milling process and to utilize these nanoparticles as reinforcement for iron-based metal matrix composites. Iron-based metal-matrix composites with 5, 10, 15 and 20wt. of the processed silica sand nanoparticles were developed using powder metallurgy technique and sintered at 900°C, 1000°C and 1100°C. The results showed that the addition of silica sand nanoparticles to iron as reinforcement decreased the green density, albeit with an improvement in sintered densities. It was also observed that the increase in the sintering temperature results in an improvement of microstructure and microhardness of the composites. The maximum hardness of 168HV in iron-based composites was found with the addition of 20wt. of silica sand nanoparticles at a 1100°C sintering temperature. It is proposed that the mechanism for the occurrence of this observed increment in microhardness is due to diffusion of silica sand nanoparticles into porous sites of the composites, resulting in the formation of FeSi phase. © (2012) Trans Tech Publications, Switzerland.