The invention relates to a magnetic material and a method of manufacturing the same. An objective of the invention resides in providing a magnetic material whose dimensional change rate after sintering is low and whose magnetic property is not deteriorated. In order to achieve the objective, a magnetic material according to the invention comprises a great number of ferrite grains (1) which are formed by sintering ferrite raw powder, and shrinkage preventing grains (2) which are interposed among these plural ferrite grains (1) and which are sintered with the ferrite grains (1) in contact with the outer peripheries thereof and are also oxidized with oxygen so as to change into ferrite when they are sintered.