A sintered rare earth magnet is produced by finely pulverizing a coarse rare earth magnet alloy powder to an average particle size of 1-10 &mgr;m in a non-oxidizing atmosphere; introducing the resultant fine rare earth magnet alloy powder into a non-oxidizing liquid comprising at least one oil selected from the group consisting of mineral oils, synthetic oils and vegetable oils, and at least one lubricant selected from the group consisting of esters of aliphatic acids and monovalent alcohols, esters of polybasic acids and monovalent alcohols, esters of aliphatic acids and polyvalent alcohols and their derivatives to prepare a slurry; molding the slurry; degreasing the resultant green body; sintering the degreased green body; and then heat-treating the green body.