[ ] nanocomposite powders with a nominal composition of were prepared by HDDR combined with mechanical milling. The microstructure was studied by Mossbauer spectrometry and TEM. The magnetic properties were investigated by VSM using bonded magnet samples. The results showed that the annealing temperature had significant influence on both the recombination kinetics and the grain size of the and phases, and the bonded magnets presented the best magnetic properties when the nanocomposite powders were prepared by annealing at for 30 min.