A sintered metal sprocket for a silent chain is produced by the following steps. A base mixture is prepared, which contains a powder metallurgical iron powder, a lubricant and a graphite powder. Then, the base mixture is subjected to a compression molding while being heated at above approximately 100Â C. thereby to produce a green compact. Then, the green compact is subjected to a sintering at a temperature above approximately 1180Â C. For much improving the mechanical performance of the sprocket thus sintered, the same may be subjected to a carbonizing hardening or an induction hardening.