Fe-6.5 wt.% Si alloys are widely known to have excellent soft magnetic properties such as high magnetic flux density, low coercivity, and low core loss at high frequency. In this work, disc-shaped preforms are prepared by spark plasma sintering at 1223 K after inert gas atomization of Fe-6.5 wt.% Si powders. Fe-6.5 wt.% Si sheets are rolled by a powder hot-rolling process without cracking, and their microstructure and soft magnetic properties are investigated. The microstructure and magnetic properties (saturation magnetization and core loss) of the hot-rolled Fe-6.5 wt.% Si sheets are examined by scanning electron microscopy, electron backscatter diffraction, vibration sample magnetometry, and AC B–H analysis. The Fe-6.5 wt.% Si sheet rolled at a total reduction ratio of 80% exhibits good soft magnetic properties such as a saturation magnetization of 1.74 T and core loss (W5/1000) of 30.7 W/kg. This result is caused by an increase in the electrical resistivity resulting from an increased particle boundary density and the oxide layers between the primary particle boundaries.