NOVELTY - A rare earth permanent magnet is prepared by disposing an alloy powder on a surface of a sintered body made of inorganic compound (I), where the alloy powder contains an inorganic compound (II) and 70 volume% of an intermetallic compound phase. The sintered body having the powder disposed on its surface at a temperature equal to or below the sintering temperature of the sintered body in vacuum or in an inert gas, is heat treated.    USE - Rare earth permanent magnet for use in a household electric appliance, an electric automobile and a wind power generator.    ADVANTAGE - The rare earth permanent magnet can be prepared with high productivity, better magnetic performance, minimal or zero amount of terbium or dysprosium, increased coercive force, and minimized decline of remanence.    DETAILED DESCRIPTION - A rare earth permanent magnet is prepared by disposing an alloy powder on a surface of a sintered body made of inorganic compound of formula (Ra-T1b-Bc) (I), where the alloy powder contains an inorganic compound of formula (R1xT2yM1z) (II) and 70 volume% of an intermetallic compound phase. The sintered body having the powder disposed on its surface at a temperature equal to or below the sintering temperature of the sintered body in vacuum or in an inert gas, is heat treated. The element(s) of R1 and M1 in the powder is diffused to grain boundaries in an interior of the sintered body and/or near grain boundaries within sintered body primary phase grains so that the coercive force of the magnet is increased over the magnet properties of the original sintered body.    R,R1=rare earth elements containing yttrium or scandium;    T1,T2=iron or cobalt;    B=boron;    a=12-20;    c=4-7;    b=balance;    M1=aluminum, silicon, calcium, phosphorus, titanium, chromium, manganese, nickel, copper, zinc, gallium, germanium, zirconium, niobium, molybdenum, silver, indium, tin, antimony, hafnium, tantalum, tungsten, lead or bismuth;    x=5-85;    z=15-95;and    y=greater than 0.