Powder metallurgy is the science of procuring powder, consolidation into required shape and sintering it to obtain final product. The final density of the product depends upon the compaction pressure and sintering temperature. Thermal conductivity is a property to measure the heat conducting ability of the material. It depends upon the composition and porosity of the material. In this study, the thermal conductivity of Fe-Cu powder is studied and compared with plain iron powder prepared at the same density. Finely powdered metal powders are compacted in a die using an UTM machine. The disc obtained is sintered in a furnace to improve its strength. The thermal conductivity of Fe-Cu Powder alloy is found to be greater than that of plain iron powder because of the addition of copper, which has higher thermal conductivity. The Rockwell hardness value is also studied for the influence of hardness on thermal conductivity. The material developed can be used in various thermal applications like cooking ovens, clutch plates, and other industrial applications.