Provided is free cutting alloy excellent in machinability, preserving various characteristics as alloy. The free cutting alloy contains: one or more of Ti and Zr as a metal element component; and C being an indispensable element as a bonding component with the metal element component, wherein a (Ti,Zr) based compound including one or more of S, Se and Te is formed in a matrix metal phase. The free cutting alloy is more excellent in machinability, preserving various characteristics as alloy at similar levels to a conventional case. The effect is especially conspicuous, for example, when a compound expressed in a chemical form of (Ti,Zr).sub.4C.sub.2(S,Se,Te).sub.2 as the (Ti,Zr) based compound is formed at least in a dispersed state in the alloy structure.

 
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