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A method of recovering magnetic powder from rare earth bond magnet comprising a process of soaking the rare earth bond magnet in a decomposing solution or holding it in a gas phase of the decomposing solution containing at least one solvent selected from a group comprising tetralin, naphthalene, 1, 4-hydroxynaphthalene, naphthol, biphenyl, 2-hexanone, acetonylacetone, phrone, cyclohexanone and methlcyclohexanone and heating at a temperature not lower than 230 DEG C. A method of recycling recovered magnetic powder by substituting at least a part or all of magnetic powder in the molding compound of a second rare earth bond magnet. For preventing deterioration of magnetic powder from oxidation at surface, air in the decomposition vessel is substituted with nitrogen gas, helium gas and argon gas or is reduced to a pressure not higher than 10 Torr.