Laser powder bed fusion (LPBF) additive manufacturing technology was used to produce functional prototypes of powder metallurgy (PM) components from high carbon content, iron-based water-atomized powders. The melt pool modeling and design of experiment approaches were combined in order to determine the LPBF operation window allowing to print parts with components similar to the PM in terms of density, microstructure and mechanical properties. The size, morphology and distribution of processing-induced pores were evaluated using computed tomography, while a microstructure analysis was carried out using X-ray diffraction and scanning electron microscopy, and the mechanical properties were evaluated using tensile and unnotched Charpy testing. It was demonstrated that LPBF technology could effectively be used for the just-in-time manufacture of high-fidelity functional prototypes of PM parts from iron-based powders.