Mixed powder that contains first hard particles, second hard particles, graphite particles, and iron particles is used to manufacture a sintered alloy. The first hard particle is a Fe—Mo—Cr—Mn based alloy particle, the second hard particle is a Fe—Mo—Si based alloy particle. The mixed powder contains 5 to 50 mass % of the first hard particles, 1 to 8 mass % of the second hard particles, and 0.5 to 1.0 mass % of the graphite particles when total mass of the first hard particles, the second hard particles, the graphite particles, and the iron particles is set as 100 mass %.