To provide a method for manufacturing raw material powder for a permanent magnet which is easily manufactured and excellent in magnetic characteristics.

In this method for manufacturing raw material powder, after acicular iron powder is compression molded under presence of a magnetic field, the compression molded material is burned in a non-oxidizing gas atmosphere at 800-1000°C, and then the obtained burned material is pulverized and mixed with fine powder of magnetic characteristics improving component, and the mixture is burned at 500-600°C while it is made to flow by argon gas, hydrogen gas or nitrogen gas.