In the present study, we systematically investigated the effect of Mn addition on nitrogenation behavior and magnetic properties of Sm-Fe powders produced by reduction-diffusion process. Alloy powders with only single phase were successfully produced by the reduction-diffusion process. The coercivity of powder rapidly increased during nitrogenation and reached the maximum of 637 Oe after 16 hours. After further nitrogenation, it decreased. In contrast, the coercivity of powder gradually increased during nitrogenation for 24 hours. The coercivity of powder was higher than that of powder at the same condition of nitrogenation. It was considered that the Mn addition facilitates the nitrogenation of powder and enhances the coercivity.