In this work, the damage evolution during tensile static and pulsating fatigue tests on sintered hardened Fe-1.5Mo-2Cu-0.5C steels at two density levels (6.8, and 7.2 Mg/m3) is studied. The damage parameter was defined by measuring the evolution of apparent elastic modulus during the test. A digital image correlation (DIC) technique was adopted to study the onset and the localization of cracks as influenced by pores distribution and morphologies. A significant difference between static and cyclic behaviour was observed, being static damage characterised by diffuse cracking into the specimen, compared to the onset and evolution of a small number of cracks connecting the most irregular pores observed during cyclic loading.