PURPOSE: To obtain the magnetic alloy having less dispersion of characteristics and suitable for a magnetic recording medium and a hard magnetic material by almost uniformly distributing ferro-magnetic crystal grains having specified value or below of grain size into a mother phase constituted of a nonferromagnetic amorphous phase.

CONSTITUTION: The magnetic alloy is constituted of a micro structure in which ferromagnetic crystal grains having ≤1000 average grain size are almost uniformly distributed into a mother phase constituted of a nonferromagnetic amorphous phase at a room temp. For manufacturing the alloy, an amorphous alloy contg. one or more kinds among Fe, Co and Ni is subjected to heat treatment by a liquisol guenching method or a vapor quenching method to form a micro structure in which ferromagnetic crystal grains having ≤1000 average grain size are almost uniformly distributed into a mother phase constituted of a nonferromagnetic amorphous phase.