A method for manufacturing hydrogen storage alloy particles comprises steps of obtaining a melt of the hydrogen storage alloy and pulverizing the hydrogen storage alloy by water atomizing process, whereby the melt is pulverized by contacting or colliding with high-speed jetting thereto to be dispersed in the form of solidified fine particles. By employing an aqueous solution of hypophosphorous acid or an alkali aqueous solution in place of water during the water atomizing process, or by etching the oxide films once formed on the surface of the hydrogen storage alloy particles with an aqueous solution of a strong acid, the thickness of the oxide film can be made thinner, and thus a high discharge capacity of a battery configured with a negative electrode comprising the alloy particles can be realized.