A method of manufacturing a coil component includes providing an intermediate body including a conductor portion formed by bending a base material mainly composed of a metal having a lower ionization tendency than iron and a substrate body containing metal magnetic particles mainly composed of iron and surrounding at least part of the conductor portion, heating the intermediate body at a first temperature to form an oxide film containing an oxide of the metal that covers a surface of the conductor portion, and after the heating at the first temperature, heating the intermediate body at a higher second temperature to form an oxide coating film containing iron oxide on a surface of each metal magnetic particles so that the substrate body is formed into a magnetic base body, to form the oxide film into an insulating oxide layer containing iron oxide and the metal, and to anneal the conductor portion.