Powder metallurgy route plays a vital role in component manufacturing for obtaining near net-shape within short time. Typically, 3 to 5% parts are made through the powder metallurgy manufacturing route in automotive application like Engine, Transmission, Brakes, etc. Selection of the material grade, sintering or sinter-hardening & secondary processes were established and stabilized for the respective critical parts across the globe. Even though, there is a restriction or hesitation to use powder metallurgy grades in critical applications due to inherent problems which are associated with part design and manufacturing process. Compaction and heat treatment process related concerns like Internal cracks, less dense at scattered locations, Poor sintering neck formation, Insufficient ductility, Improper sinter-hardening, foreign particles, or inclusions, etc., makes the part to perform inconsistently in durability. Various recurring failure modes in few of the critical parts and its resolution are covered in this technical paper. Failures were analyzed through a systematic approach such as Visual examination, Metallurgical analysis, Hardness examination, Fractography analysis thru Optical Macroscopy and Scanning Electron Microscope. The analysis observations were utilized for system-level CAE simulations, root cause identification and permanent resolution for these failures.