An iron silicide sputtering target in which the oxygen as a gas component in the target is 1000 ppm or less and a method of manufacturing such an iron silicide sputtering target are provided. The method includes the steps of melting/casting high purity iron and silicon under high vacuum to prepare an alloy ingot, subjecting the ingot to gas atomization with inert gas to prepare fine powder, and thereafter sintering the fine powder. The amount of impurities in the target will be reduced, the thickness of a βFeSi2 film during deposition can be made thick, the generation of particles will be reduced, a uniform and homogenous film composition can be yielded, and the sputtering characteristics will be favorable. The foregoing manufacturing method is able to stably produce the target.