The paper presents the results on research of machining anti-friction bushings of lever brake systems of rail transport, wherein the bushings are made of powder material based on iron and copper. Powder composition contains Fe-C-Cu with Ni and Mo content of less than 0.3%, and with reduced phosphorus content. The porosity of the bushings were in the range of 15 – 20 %. The main objective of the work was to determine the optimal machining parameters, as well as to evaluate the quality of the machined surface. The bushing were machined with cutting speed in the range of 130 – 150 m/min. To assess the quality of the machined surfaces the 3D roughness parameters were used, which allow to asses the surface roughness in more accurate details. The microstructure of the samples indicated the presence of pores onto the machined surfaces. It was found that to improve the quality of the surface it is necessary to adjust the parameters of the powder processing of parts with high porosity in the direction of their reduction. Studies of the microstructure and morphology of chips showed that the shape and structure of the chip is highly dependent on the porosity of the material and its processing conditions.