An aspect of the present invention relates to a method of manufacturing magnetic powder, which comprises adding an alkali metal salt compound comprising a substituent selected from the group consisting of an alkali metal salt of a carboxyl group and an alkali metal salt of a hydroxyl group to a water-based magnetic liquid comprising magnetic particles dispersed in an acidic water-based solvent to cause the magnetic particles to aggregate in the water-based magnetic liquid; and collecting the aggregated magnetic particles to obtain the magnetic powder.