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The oxide dispersion strengthened (ODS) ferritic steels are one of the most important in fuel cladding materials for 4th Generation nuclear reactors because of their excellent mechanical properties such as irradiation resistance, swelling resistance, and elevated temperature tensile/compressive strength. Mechanical alloying (MA) is one of the most promising routes for developing nanocrystalline ferritic ODS steel materials. For the production of nanocrystalline ferritic ODS steel powders, the most influencing factor is the milling speed and milling time during the mechanical alloying process. With the improper selection of milling time and speed, the final milled powders become an amorphous structure consisting of high impurity inclusions in the microstructure, and strength was also affected. In order to overcome these drawbacks, the present investigation was taken into account for the selection of appropriate mechanical milling speed and time, which was optimized through Taguchi analysis followed by the MA process. The optimized mechanical milling speed and time of milled powders were characterized through X-Ray Diffraction Analysis (XRD) and Scanning Electron Microscope (SEM).