The paper focuses on the advancements in Additive Manufacturing (AM) and the growing demand for small gradation metallic powders. It presents a comparative study between two methods of producing 316L stainless steel powders: Ultrasonic Atomization (UA) and Plasma Arc Gas Atomization (PAGA). The study begins by analyzing the powder particle statistical distribution, chemical composition, density, and flowability of the powders produced by both methods. Subsequently, test samples are produced using AM to observe differences in microstructure, porosity, and hardness. The study concludes with an analysis of mechanical properties, including tensile testing with Digital Image Correlation (DIC) and Charpy’s impact tests. The research finds that both ultrasonic and gas atomization methods can produce materials with similar properties, which is significant for the AM industry.