The invention requests to protect an iron-based brass powdery metallurgical material and relates to a preparation process thereof. The preparation process comprises the following steps: preparing iron-copper powder coated with copper by displacement reaction of iron and copper sulfate solution, adding zinc powder into the iron-copper powder, diffusing by heat treatment to obtain red, yellow, golden or green-yellow iron-based brass powder. The powder consists of, calculated by iron powder 100 weight parts, copper 3 to 25% of the weight of iron powder, zinc 3 to 40% of the weight of copper, and iron powder in balance. By adopting chemical displacement, the iron-based brass powder can well solve the disadvantages of incomplete coating of copper layer and iron powder of the copper-coated iron powder, insufficient coating strength, easy falling off of the copper layer, the presence of black spots on the product, poor strength, large abrasion of rotation shaft by iron-exposing spots, short service life, etc. The brass powder has the advantages of good antioxidant performance and low production cost, and is an ideal material as the substitute of copper powder, copper-coated iron powder and bronze powder desired for sintering metal oil content bearing and manufacturing mechanical parts, hard alloy and diamond products.