Yttrium oxide (Y2O3) is one of the most stable oxides to withstand at high temperature and suitable for use as a dispersoid in oxide dispersion strengthened (ODS) steel alloy. In this paper, Y2O3 nano-powders are synthesized by three different techniques namely mechanical milling, single fuel combustion synthesis and mixed fuel combustion synthesis. In mixed fuel, various combinations of fuels are used instead of a single fuel (glycine, citric acid, urea, and ethylene glycol). Thermal characteristics and crystalline nature of Y2O3 nano powders produced by different techniques are analyzed extensively. Y2O3 nano powders with amorphous to nano-crystalline structure and having 8-80 nm crystallite size are obtained from the mixed fuel process, that is suitable for use as dispersiod in ODS steel. Further, these powders are dispersed in ferritic steel matrix using an innovative dual drive planetary ball mill to produce Y2O3 dispersed ODS steel powder within a short time period. Transmission electron microscopy analysis of milled oxide dispersion strengthened steel powder reveals a homogeneous distribution of Y2O3 nano powders in ferritic steel matrix after milling time of 5 h. (C) 2015 The Society of Powder Technology Japan. Published by Elsevier B.V. and The Society of Powder Technology Japan. All rights reserved.