A method of producing a magnetic recording medium comprises the steps of kneading and dispersing ferromagnetic powder, binder and non-ferromagnetic powder to obtain magnetic coating solutions, and applying a plurality of the magnetic coating solutions on a non-ferromagnetic substrate to form a plurality of magnetic layers on the substrate. In the kneading and dispersing step, a magnetic coating composition containing a ferromagnetic powder and a solvent of 15 to 30 wt % of the ferromagnetic powder is kneaded by a two-shaft continuous kneading and mixing machine and then dispersed by a pin type sand grinder to obtain a first magnetic solution. Another magnetic coating composition containing a ferromagnetic powder and a solvent of 30 to 50 wt % of the ferromagnetic powder is kneaded by a double-arm open kneader and then dispersed by a pin type sand grinder, and finally dispersed by a disk type sand grinder to obtain a second magnetic coating solution. In the magnetic solution applying step, the first magnetic coating solution is at first applied on said substrate and then the second magnetic coating solution is applied thereon.