In this work, the catalytic properties of low-cost nanostructured iron oxide have been improved by the mechanical milling method through combination with copper and cobalt oxide. Synthesized catalysts were characterized by X-ray diffraction, transition electron microscopy, and Brunauer-Emmet-Teller techniques. Also, the catalytic activity and stability of the powders for CO oxidation reaction were investigated. Results indicated that the catalytic activity of the powders has significantly improved after mechanical milling. Minimum complete conversion temperatures for Co-Fe and Cu-Fe composite oxide catalysts were around 245 and 275 degrees C, respectively. No decline in the activity of the catalysts was observed during the long-term stability test. Furthermore, catalytic activity of the composite powders, especially Co-Fe improves at subsequent cycles. In general, cycle durability, stability at high temperature and reaction rate of the iron oxide powder has been improved using it as Cu-Fe and Co-Fe oxide composites.