A method of producing a magnetic recording medium comprising the step of forming a magnetic layer on a non-magnetic base film running at a constant speed by continuous oblique evaporation depositing metal vapor of volatilized metal incident obliquely to a surface of the non-magnetic base film, wherein the evaporation is conducted at a film forming rate, defined as an average deposition rate of the magnetic layer at a part of the non-magnetic base film exposed to the incident metal vapor, of not less than a predetermined rate to form an internal microstructure of the magnetic layer comprising columns each having a diameter of not more than about 15 nm constituted by magnetic particles having a size of not more than about 10 nm connected in chains in a direction substantially perpendicular to the magnetic layer and non-magnetic particles packed between the columns and separating the columns from each other, and a magnetic recording medium produced by the above method.