The present invention provides an electrode for a polymer electrolyte fuel cell comprising a high-performance electrode catalyst particle which is sufficiently coated with a hydrogen ion conductive polymer electrolyte and has a water repellent material suitably supplied thereto for water management. The method of producing the electrode in accordance with the present invention comprises the steps of spraying a solution or dispersion of a hydrogen ion conductive polymer electrolyte into a dry atmosphere in which a catalyst particle comprising an electrically conductive carbon powder carrying a platinum group metal catalyst is flowing, to coat the catalyst particle with the polymer electrolyte, and then spraying a solution or dispersion of a water repellent material to the catalyst particle to attach the water repellent material to the catalyst particle.