An apparatus for continuously granulating powder material has a feeder for continuously supplying powder material, and a granulation vessel. The granulation vessel includes a granulation zone and a drying zone. The apparatus also has a spray nozzle disposed so as to be declined above the granulation zone for adding binder to the powder material, a perforated plate disposed below the granulation zone and the trying zone, an intermediate weir disposed between the granulation zone and the drying zone so as to provide a space between the intermediate weir and the perforated plate, an outlet weir disposed at an outlet side of the drying zone, and a heated air supplying device for supplying from below heated air to the granulation zone and the drying zone so as to form a fluidized bed of the material.