There are provided a permanent magnet and a manufacturing method thereof capable of preventing degrade in the magnetic properties by densely sintering the entirety of the magnet. To fine powder of milled neodymium magnet is added an organometallic compound solution containing an organometallic compound expressed with a structural formula of M-(OR)X (M represents Dy or Tb, R represents a substituent group consisting of a straight-chain or branched-chain hydrocarbon, X represents an arbitrary integer) so as to uniformly adhere the organometallic compound to particle surfaces of the neodymium magnet powder. Thereafter, the desiccated magnet powder is calcined by utilizing plasma heating and the powdery calcined body is sintered so as to form a permanent magnet 1.