A magnetic recording medium comprising a non-magnetic substrate such as on polyethylene terephthalate film, and deposited on the surface of the substrate by a ionized cluster beam deposition method, at least one ferromagnetic material selected from the group consisting of cobalt, cobalt-containing alloys, mixtures of cobalt with other elements, and chromium dioxide; and a process for production thereof. The magnetic recording medium is characterized by having superior magnetic properties, especially superior coercive force, residual magnetic flux density and squareness ratio, and high mechanical strength.