Garbon steel(SM35C) was gas nitrocarburized at $580^{circ}C$ in $55%N_2-40%NH_3-5%CO_2$ mixed gas atmosphere, and then the steel was induction hardened at $850^{circ}C$. The microstructure of gas nitrocarburized surface layer was observed by optical microscope and SEM. The phase analysis was carried out by X-ray diffraction method. The mechanical properties of gas nitrocarburized SM35C steel was evaluated by hardness, wear and fatigue test. The thickness of compound and diffusion layer were increased with increasing the gas nitrocarburizing time and the densest compound layer was obtained at 3 hours gas nitrocarburizing time. In case of 15sec induction hardening after gas nitrocarburizing, the surface hardness was decreased from 800Hv to 630Hv owing to the decomposition of compound layer, but wear resistance was increased because of increased hardness of diffusion layer. The fatigue strength of induction hardened steel after gas nitrocarburizing, $58kgf/mm^2$, was higher than $41.5kg/mm^2$ of gas nitrocarburized steel and $45kg/mm^2$ of induction hardened steel, respectively.