The present invention provides a magnetic recording medium wherein a fine non-magnetic inorganic powder, the dispersibility of which is improved, is used to improve the surface smoothness of a lower non-magnetic layer, thereby giving an excellent surface smoothness of an upper magnetic layer and electromagnetic conversion property; and a production process thereof. A magnetic recording medium comprising at least a non-magnetic support, a lower non-magnetic layer on one surface of the non-magnetic support, and an upper magnetic layer on the lower non-magnetic layer, wherein the upper magnetic layer contains at least a ferromagnetic powder, and a binder resin material, and the lower non-magnetic layer contains at least carbon black, iron oxide, and a binder resin material, and the iron oxide has an average major axis length of 30 to 100 nm, and a specific surface area based on the BET method of 80 to 120 m2/g, and the iron oxide contains moisture in an amount per unit specific surface area of 0.13 to 0.25 mg/m2.