The paper presents results of the corrosion resistance of mechanically alloyed oxide dispersion strengthened 14% Cr ferritic stainless. The oxide dispersion strengthened steel was prepared by means of the powder metallurgy route that consists of mechanical alloying of a pre-alloyed argon atomized steel powder (Fe-14Cr-2W-0.3Ti) with 0.3 Y2O3 (wt%), followed by HIPping at 1150°C and annealing at 850°C for 1 h. The density of ODS ferritic steel after consolidation was about 99.0% of theoretical alloy density. The potentiodynamic corrosion tests were performed for 1h and 24 h of material exposure in a physiological saline solution. For comparison the 316 LV austenitic stainless steel was also examined. The obtained results revealed that both materials were in a passive stage, however the lower current corrosion density was measured for 316 LV steel. On the contrary, the austenitic stainless steel exhibited unstable chemical processes at the passive region. On the surface of both materials localized pitting corrosion was observed with different morphology of the cavities. A broken oxide scale with poor adhesion to the ferritic steel matrix with large number of density of localized corrosion attack was observed on the surface of the ODS steel.