In this work, the effects of manufacturing parameters on the microstructure and densification of iron powders processed by direct laser sintering were investigated. A specific energy parameter E, which expresses the energy input per volume of tire sintered layer, was defined and used to evaluate the impact of the parameters on the densification and the attendant micro structural features. The results show that the sintered density is an exponential function of the defined Specific energy. With increasing the energy input up to 2kj/mm3, the densification rate is relatively high. Here, the microstructure consists of bin pores (.5-1mm) and elongated ferrite grains. The densification rate will be decreased if the energy input exceeds 0.2 kJ/mm3 With intensifying the energy over 0.8 kJ/mm3, the formation of horizontally oriented cracks is likely to occur while the deflsit1 remains almost constant.