We introduce powder blasting using a pressurised nozzle and a metallic mask as a new promising technology for microsystem fabrication. We study basic parameters of this powder blasting erosion process as well as mask-geometry effects on the erosion rate. We demonstrate the application potential of this technique in three important fields of microsystems research: (i) the realisation of microfluidic chips for biochemical separations, (ii) the micropatterning of composite hard magnetic layers for mechatronic and magnetic sensor applications, and (iii) the realisation of inertial sensors in glass. We present for the first time a mechanical and electrical characterisation of powder-blasted accelerometer devices. Keywords: Powder blasting; Microfabrication; Accelerometer; Erosion