A permanent magnet is provided which has formed a Dy, Tb film on a surface of an iron-boron-rare earth sintered magnet of a predetermined shape, with diffusion thereof into grain boundary phases, having a higher coercive force. The method of manufacturing a permanent magnet includes a film-forming step of evaporating metal evaporating material containing at least one of Dy and Tb and adhering evaporated metal atoms to a surface of the iron-boron-rare earth sintered magnet, and a diffusing step of performing heat treatment to diffuse metal atoms adhered to the surface into grain boundary phases of the sintered magnet. The metal evaporating material contains at least one of Nd and Pr.