Powder metal (P/M) process is making inroads in automotive transmission applications because of substantially lower cost of P/M steel components for high volume production as compared to wrought or forged steel parts. Although P/M gears are increasingly used in powered hand tools@ gear pumps@ and as accessory components in automotive transmissions@ P/M steel gears are currently in limited use in vehicle transmission applications. The primary objective of this project was to develop high strength P/M steel gears with bending fatigue@ impact@ and pitting fatigue performance equivalent to current wrought steel gears. Ausform finishing tools and process were developed and applied to powder forged (P/F) steel gears in order to enhance the strength and durability characteristics of P/M gears@ while maintaining the substantive cost advantage for vehicle transmission applications. This paper presents the processing techniques used to produce Ausform finished P/F steel gears@ and comparative bending fatigue@ impact and surface durability performance characteristics of Ausform finished P/F steel gears@ as well as conventional wrought steel gears.