Abstract: A method for producing a water-atomized prealloyed powder with high cold press formability, includes the following steps: (a) preparing a ?400 mesh semi-finished prealloyed powder; (b) controlling the semi-finished prealloyed powder to have a moisture content of 1 wt % to 2 wt % and an oxygen content of 0.6 wt % to 0.8 wt %, and then drying in a vacuum drying oven at 100° C. for 90 minutes to 120 minutes, so that a preliminary bond is produced between powder particles; and (c) reducing, annealing, crushing, and sieving an initially bonded powder particle. The powder is changed from a spheroidal shape to more complex shapes such as “rice ear shape”, “grape shape”, and “satellite powder”, which greatly improves the cold press formability of the prealloyed powder; the method only performs simple surface modification of the powder without changing other properties, and has wide applicability.