A recycling method of producing magnetic material powder from bonded magnets which are produced by mixing magnetic material powder, as raw material powder, with a binder and subjecting a mixture to molding forming, has at least the steps of: (a) separating and collecting the magnetic material powder from the bonded magnets by removing all or a prescribed percentage of the binder contained in the magnets; (b) removing all or a prescribed percentage of the particles of diameter smaller than a prescribed particle diameter from the separated and collected magnetic material powder; and (c) mixing the magnetic material powder, from which the particles of diameter smaller than the prescribed one are removed, with a virgin magnetic material powder in a prescribed mixing ratio, so as to produce a new raw material powder.