A magnetic coating composition comprising a binder dissolved in a solvent and magnetic grains dispersed therein is applied onto a surface of a non-magnetic substrate continuously moved. The coating film thus overlaid on the non-magnetic substrate is subjected to a preliminary orientation step for orientating the magnetic grains in the coating film, and then to a preliminary drying step. A final orientation step is then conducted while intermediate drying is carried out. Thereafter, final drying is effected.