The present invention provides a method of manufacturing a magnetic recording medium that is made by applying a magnetic paint containing a ferromagnetic powder and a binder to a nonmagnetic support, wherein the magnetic paint contains a magnetic liquid, which contains the ferromagnetic powder and the binder, and a polishing material liquid, which contains a polishing material and a solvent, and wherein the magnetic liquid and the polishing material liquid are individually subjected to dispersion treatment, the magnetic liquid and the polishing material liquid are then mixed together, and after that, a mixed liquid of the magnetic liquid and the polishing material liquid are subjected to dispersion treatment by application of ultrasonic waves.