Powder metallurgy plain carbon steel (Fe–0.5% C) replaces gradually the conventional C45 steel in all industrial sectors due to its comparable strength and better metallurgical properties. This research investigates the influence of density/porosity of powder metallurgy plain carbon steel on wear characteristics and optimizes the wear working parameters to establish minimum wear loss and coefficient of friction during wear using Taguchi-grey relational optimization analysis. The sintered steel preforms were subjected to uni-axial compressive load (cold upset) to obtain various percentage theoretical densities. The wear test specimens made out of various densities of the sinter-forged plain carbon steel were used to conduct wear tests as per the test plan generated by the Design Expert software. The optical and scanning electron microscope images taken from the worn test specimens were used for the investigations of wear mechanisms of the alloy steel. It is observed from the wear test results that the porosity in the powder metallurgy plain carbon steel has a vital role in wear properties of the steel. It has also been found that the optimized working parameters such as speed and load are found as same irrespective of the densities of the plain carbon steel.