To provide an inexpensive wear resistant sintered alloy which has high corrosion resistance and is also usable in an internal combustion engine using alcohol fuel, and to provide its production method.

Disclosed is a wear resistant sintered alloy which has the total composition comprising, by mass, 1 to 5% Ni, 2.25 to 33.3% Co, 1.5 to 18% Cr, 2.25 to 15.75% Mo, 0.15 to 4.5% Si and 0.5 to 1.5% C, and the balance Fe with inevitable impurities and has a metallic structure where a hard phase having a composition comprising 15 to 35% Mo, 1 to 10% Si and 10 to 40% Cr, and the balance Co with inevitable impurities is dispersed into an Fe-Ni-C based alloy matrix by 15 to 45%.