Boron has been known to activate densification during sintering of ferrous powder compacts, though with risk of embrittlement. In the present study, specimens Fe-B and Fe-C-B prepared from standard atomized iron powder with addition of ferroboron Fe-21%B were sintered in different atmospheres, and the resulting microstructures and properties were studied. It showed that the activating effect of boron is observed during sintering in argon and in hydrogen while sintering in N2 containing atmospheres results in rapid deactivation of boron, through formation of stable BN. In hydrogen atmosphere, surface deboronizing was observed to considerable depth. Ar is chemically inert, but Ar trapped inside closed pores tends to inhibit further densification. The impact energy data indicated that the embrittling effect of boron is enhanced significantly by presence of carbon. In the fracture surfaces, transgranular cleavage fracture can be observed both at very low and high impact energy values.