Research Institute. Hsinchu, Chutung, TAIWAN, R.0.C Many papers have already reported the excellent m n e t i c properties of SmsFeirNx (X=2-3) powders, which are suitable for making good metal composite magnet'".Up to now, the starting S8:Felr alloys that reported are mostly produced by vacuum inductioon melting (VU) process, the ingot usually consists of many free iron inside due to insufficient cooling rate during chi 11 ing process. Subsequent long homogenization treatment ( 24 hrs-1 week 1 before nitrogenization is necessary to dissolve the free iron, it seem to be uneconomic for comnercial production. In this study, we tried to prepare the SmnFel7 powders by Reduction diffusion (RD ) method followed by rapid quench to eliminate the free iron. with the benifit of omiting homogenization treatment. The proper way of nitrogenation of these RD SmaFelr powders has been studied to conpare with the effect of that in VM ShFet7 powders. 99 X pure Sm.0.. Fe and Ca povders were used for RD process to meet the