Pure titanium, nickel and carbon powders were mechanically alloyed to synthesize the TiC-Ni cermet powders with ultrafine microstructures. As a result of milling, formation of the ultrafine TiC or amorphous Ti-Ni phase were obtained, depending on milling conditions. The effect of milling variables on the synthesizing behaviour of the powders was investigated. The sintered TiC-Ni cermet from the mechanically alloyed powders contained TiC particles of 0.2-1.5μm in size as compared with those of 3-5μm for a commercial cermet. The spex-milling technique of the mechanical alloying process turned out to be more effective in the formation of the final cermet microstructure than the ball-milling one.