Iron‐rich 2:17‐type SmCo magnets are expected to achieve high performance and relatively low cost. However, inhomogeneous cellular structures usually exist in iron‐rich magnets, resulting in a drastic reduction in coercivity and energy product. Herein, a strategy is proposed to regulate the dislocation by decreasing the Sm content and extending the solid‐solution duration in precursor of iron‐rich SmCo magnet. High‐density dislocations in precursor contributed to 1:5H nucleation, leading to uniform cellular structures in final magnets. As a result, a remarkable intrinsic coercivity of 1.50 T and one of the highest remanences (1.24 T) are simultaneously achieved in the iron‐rich Sm25Co42Fe26Cu5Zr2 (wt%) magnet. This study provides valuable insights into the design and development of iron‐rich 2:17‐type SmCo magnets.