Abstract PM304 composite has been prepared by high-energy ball milling and powder metallurgy. The composition of the PM304 composite is the same as that of PS304, but the microstructure is quite different. The microstructure of PM304 composite was fine and dense, the size of self-lubricating particles in the composite was very small. The tribological properties of PM304 composites against Inconel X-750 were examined in the temperature range from room temperature to 800 °C. The friction coefficient of PM304 was ranged from 0.32 to 0.41. At room temperature, brittle fracture occurred on the worn surface. With the increase of temperature up to 200 °C, a protective layer consisting of fluorides and Ag existed on the worn surface and led to a low wear rate. The wear resistance of the PM304 was superior to that of the PS304 in the temperature range from room temperature to 650 °C. The improvement in wear resistance of the PM304 was discussed in the terms of its microstructural characteristics.