The effect of Fe addition on the mechanical properties of Ti–6Al–4V alloys was investigated. Ti–6Al–4V prealloyed powders were prepared via a hydrogenation and dehydrogenation process using turning chips of Ti–6Al–4V alloys as the starting material. Mixed powders of Ti–6Al–4V powders and 3–4 mass% Fe powders were consolidated using a hot extrusion process and subsequently hot rolled. With increasing Fe content, the tensile strength and 0.2% proof stress of the Fe-containing alloys increased by 2%–30% compared to those of the Fe-free alloy in both as-hot-rolled and air-cooled specimens. The results also showed that the elongation in the 3% Fe-containing alloys was at least 10%, regardless of the treatment procedure. The balance between the generated martensitic phase and the β-phase ratio in (α+β)-dual-phase alloys appears to determine both the strength and elongation of the alloys. The Ti alloys obtained in this study have strong potential for application in automobiles and aircraft.