Iron-based powder mixtures were prepared by dry and wet mixing method. The friction properties during compaction were tested by measuring the internal and external friction coefficient. The test results showed that the wet mixing process could realise the homogeneity of lubricant and improve the processing properties of the powder mixtures. With 0.6 wt-% lubricants, wet mixing powder mixtures have a flow rate of 29.6 s/50 g, an apparent density of 3.18 g cm^–3, a repose angle of 35.5°, and the friction coefficient during the compaction is 0.223. An equation to calculate the total (both internal and external) friction forces during the compaction process is proposed, and then the factors influencing the friction coefficient during compaction were quantitatively analysed.