There are provided a permanent magnet and a manufacturing method thereof that enables concentration of V, Mo, Zr, Ta, Ti, W or Nb contained in an organometallic compound in grain boundaries of the permanent 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 V, Mo, Zr, Ta, Ti, W or Nb, 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, a compact body obtained by compacting the magnet powder is held for several hours in hydrogen atmosphere at 200 through 900 degrees Celsius so as to perform a calcination process in hydrogen. Thereafter, through sintering, a permanent magnet is manufactured.