Abstract: A method of manufacturing a rare earth permanent magnet comprises the steps of: forming a rare earth magnet by applying mechanical processing to a magnet block material, thereby damaging the surface of the magnet and causing a magnetic characteristic (BH)max of the magnet to deteriorate, followed by transforming a rare earth metal or an alloy thereof into fine particles or a vapor, and allowing the fine particles or vapor to diffuse and permeate the magnet, thereby improving the quality of the damaged magnet surface portion so that the magnetic characteristic (BH)max is recovered.