In the present work, we have examined the effect of Ti on the properties of Fe-Y2O3 alloys. The result showed that the addition of Ti was effective for improving mechanical properties. This is due to the reduction of oxides by Ti during mechanical alloying and hot-consolidation. In particular, iron oxides are effectively reduced by the addition of Ti. Compared to the pristine Fe-Y2O3 alloys, titanium-added alloys exhibited fine and uniform microstructures, resulting in at least 60% higher tensile strength.