A manufacturing method of rare earth magnet based on heat treatment of fine powder includes the following: an alloy for the rare earth magnet is firstly coarsely crushed and then finely crushed by jet milling to obtain a fine powder; the fine powder is heated in vacuum or in inert gas atmosphere at a temperature of 100° C.˜1000° C. for 6 minutes to 24 hours; then the fine powder is compacted under a magnet field and is sintered in vacuum or in inert gas atmosphere at a temperature of 950° C.˜1140° C. to obtain a sintered magnet; and machining the sintered magnet to obtain a magnet; then the magnet performs a RH grain boundary diffusion at a temperature of 700° C.˜1020° C. An oxidation film forms on the surface of all of the powder.