Austenitic stainless steels are the most common and well-known class of stainless steel because of superior roperties such as high weldability, high corrosion resistance and good impact resistance in low temperature. Howevere, these materials have poor strength at high temperatures. One of the most important methods that improves mechanical properties of steels, such as the yield strength, ultimate tensile strength, is making finer grain and dispersion nanoparticles of oxide in the steel matrix by mechanical alloying. In this research, a mixture of Fe2O3, Ni, Cr, Fe and Al powders was mechanically alloyed by high energy ball milling in a pure Argon atmosphere for 50 and 70 h. X-ray diffraction analysis (XRD) was used to evaluate the formation of alumina oxide particles during mechanical alloying. The results suggested that with increscent of milling time, the intensity of Fe2O3, Ni and Cr peaks decreased and also the Fe-Ni-Cr solid solution peak were formed. Comparing the peak solution of solid solution at 50 and 70 hours showed an increase in the unit cell parameter. Also, the solid solution eaks were displaced to the left, indicating that Ni and Cr were dissolved in Fe. After milling of 50 h, the grain size was 25 nm.