A metal powder of improved quality is obtained by causing molten metal held in a vessel to flow out in a smooth stream through an outlet formed at the bottom of the vessel, throwing the jet of an atomizing medium consisting of nonpolar solvents such as mineral oils, or animal and vegetable oils against the stream of molten metal thereby atomizing the molten metal, separating and recovering the produced metal powder and the used atomizing medium by means of a fluidized bed furnace, and if necessary subjecting the metal powder to decarburization and softening anneal. In this production, the molten metal, the path for the flow of the molten metal, and the produced metal powder are substantially insulated from the atmospheric air.