The contribution presents the recent advances in permanent magnets with nanocrystalline or nanophase structures based on rare‐earth compounds. The main classes of magnets discussed are the nanocrystalline single‐phase and nanocomposite R
2
Fe
14
B‐based magnets; nanocomposite Nd–Fe carbides; bulk‐hardened R
2
Co
17
and RCo
5
nanocrystalline magnets; Sm(Fe,M)
12
, SmFe
3
, and Sm
5
(Fe,M)
17
nanocrystalline magnets; Sm
2
Fe
17
nitrides and carbides; and Nd(Fe,M)
12
nitrides and carbides (R and M denotes rare‐earth elements and transition metals, respectively). The magnetic hardening mechanism and the relation with the particular morphologies (grain size and phase constitution) of the different types of nanocrystalline and nanostructured magnets are reviewed.