Layered composites of Ti(C, N) reinforcements and stainless steel have been prepared successfully by powder technology. The layer composite consisted of two layers. The upper layer consisted of TiCN reinforcements and stainless steel as binder material. The lower layer was entirely of binder material (stainless steel). The micro structural study revealed that the upper layer (TiCN/465 stainless steel) showed core–rim microstructure of conventional cermets and the lower layer showed the structure of sintered steel. An intermediate layer was formed due to diffusion reaction of upper and lower layers. This intermediate layer showed a gradient microstructure. The bending strength of the layered material measured was remarkably higher. Ninety per cent increase in the bending strength in the case of 50 wt-% reinforcement in the upper layer was found. The fracture morphologies of upper, lower and intermediate layers are also reported