There are provided a permanent magnet and a manufacturing method thereof capable of preventing grain growth in a main phase and enabling rare-earth rich phase to be uniformly dispersed. To fine powder of milled neodymium magnet material is added an organometallic compound solution containing an organometallic compound expressed with a structural formula of M-(OR)x (in the formula, M represents Cu or Al, R represents a substituent group consisting of a straight-chain or branched-chain hydrocarbon, x represents an arbitrary integer) so as to uniformly adhere the organometallic compound to particle surfaces of the neodymium magnet powder. Thereafter, a compact body formed by compacting the above neodymium magnet powder is held for several hours in hydrogen atmosphere at 200 through 900 degrees Celsius. Thereafter, through a sintering process, a permanent magnet is manufactured.