The invention discloses a method utilizing powder metallurgy friction reducing materials to manufacture gears. Surface layer materials including graphite, molybdenum, titanium, copper, cerium dioxide,zinc stearate, tin and iron are uniformly mixed by a ratio. Base body materials including nickel, molybdenum, titanium, graphite, a lubricating agent, a sintering aid and iron powder are uniformly mixed after being previously dispersed. Then, the surface layer materials and the base body materials which are mixed together are sequentially put in the same mould, and a green is pressed at 60-120DEGC under the pressure of 500-600Mpa. Low-temperature pre-sintering and high-temperature sintering are carried out under the protection of hydrogen and argon. Then, oil immersion is carried out, and afinished product is finally obtained. The finished product comprises a surface layer and a base body layer, the base body layer is high in density, high in strength and high in hardness, has high carrying capability and is used for carrying, the surface layer is a porous layer and provides a lubricating function, and at the same time, TiC particles produced on the surface layer ensure the strengthand hardness of the surface layer.