The semiconducting ${eta}-FeSi_2$ compound has been recognized as a thermoelectric material with excel-lent oxidation resistance and stable characteristics at elevated temperature. In the present work, we applied mechanical alloying(MA) technique to produce ${eta}-FeSi_2$ compound using a mixture of elemental iron and silicon powders. The mechanical alloying was carried out using a Fritsch P-5 planetary mill under Ar gas atmosphere. The MA powders were characterized by the X-ray diffraction with Cu-K $alpha$ radiation, thermal analysis and scanning electron microscopy. The single ${eta}-FeSi_2$ phase has been obtained by mechanical alloying of $Fe_{33}Si_{67}$ mixture powders for 120 hrs or for 70 hrs coupled with the subsequent heat treatment up to $700^{circ}C$. The grain size of ${eta}-FeSi_2$ powders analyzed by Hall plot method was 44nm.