The present invention is intended to provide composite magnetic material having excellent soft magnetic characteristics that can reduce the size of electromagnetic components such as inductors, choke coils, and transformers and is usable in a high frequency range. The composite magnetic material of the present invention includes substantially spherical magnetic metal powder, flat inorganic insulating material interposed between the magnetic metal powder, and a binder, in which the magnetic metal powder has an aspect ratio of not more than 3, and the inorganic insulating material has an aspect ratio of not less than 2 and is cleavable. The present invention also provides a process for producing the composite magnetic material, which includes carrying out pressure-forming while crushing the inorganic insulating material.