The austenitic stability and strain-induced martensitic transformation behavior of a nanocrystalline FeNiCrMoC alloy were investigated. The alloy was fabricated by high-energy ball milling and spark plasma sintering. The phase fraction and grain size were measured using X-ray diffraction. The grain sizes of the milled powder and the sintered alloy were confirmed to be on the order of several nanometers. The variation in the austenite fraction according to compressive deformation was measured, and the austenite stability and strain-induced martensitic transformation behavior were calculated. The hardness was measured to evaluate the mechanical properties according to compression deformation, which confirmed that the hardness increased to 64.03 HRC when compressed up to 30%.