To develop matrix material with self-lubricating ability for impregnated diamond bit, research was made on addition of graphite power to conventional matrix formula. The bending strength, hardness, wear resistance and friction coefficient (with 60# white corundum grinding wheel as counter) of matrix materials were tested; the topography of wear surfaces was analyzed with scanning electric microscope. The test results showed that the bending strength and hardness of matrix material declined with graphite powder adding and the friction coefficient decreased with 60# white corundum grinding wheel; while wearing resistance increased at first with graphite content increasing, then decreased when the content of graphite exceeded 6.0%. Morphology analysis indicated that conventional matrix material produced obvious plastic deformation in wearing and the plasticity of matrix material declined with graphite adding, and furrow wears and flaking appeared.