Provided are a free-cutting stainless-steel material for precision processing which can satisfy all of excellent cutting precision, cuttability, corrosion resistance, and environmental preservation at the same time and a process for producing the stainless-steel material. The free-cutting stainless-steel material for precision processing is a material to be formed by cutting on the order of micrometer, and is characterized by containing a material for imparting cutting workability which is constituted of h-BN grains and has been dispersed as primary particles in the steel. The process for producing a free-cutting stainless-steel material for precision processing is characterized by heating a free-cutting stainless-steel material for precision processing in which h-BN grains have been precipitated, thereafter quenching the material to eliminate the h-BN grains through formation of a solid solution thereof, and then tempering the material to thereby precipitate h-BN grains again which are evenly dispersed in the material.