The feasibility of producing nano-sized WC and WC-Co powders by reduction and carburization of WO₃ and Co₃O₄ under hydrogen and methane atmospheres was evaluated. WC powders of 1 \\micron in particle size were obtained from WO₃ on reduction and carburization at 950°C. On the other hand, nano-sized WC-Co powders with a particle size of ∼ 100 nm could be produced by a two-step reduction process, using a blend of WO₃ and Co₃O₄. Critical control parameters in this process, such as the gas flow rate, temperature and treatment time, were found.