To meet the current demand in the fields of permanent magnets for achieving a high energy density, it is imperative to prepare nano-to-microscale rare-earth-based magnets with well-defined microstructures, controlled homogeneity, and magnetic characteristics via a bottom-up approach. Here, on the basis of a microstructural study and qualitative magnetic measurements, optimized reduction conditions for the preparation of nanostructured Sm-Co magnets are proposed, and the elucidation of the reduction-diffusion behavior in the binary phase system is clearly manifested. In addition, we have investigated the microstructural, crystallographic, and magnetic properties of the Sm-Co magnets prepared under different reduction conditions, that is, H2 gas, calcium, and calcium hydride. This work provides a potential approach to prepare high-quality Sm-Co-based nanofibers, and moreover, it can be extended to the experimental design of other magnetic alloys.