High performance powders of NdFe10.5V1.5Nx with Br=1.08 T, Hcj=342 kA/m,(BH)max=137 kJ/m, and Tc>820 K were successfully prepared by optimizing the homogenizing treatment of parent alloys, nitrogenation temperature and time, and particle size before and after nitrogenation.Therelationship of the crystallographic structure and the intrinsic magnetic properties to the nitrogen content is investigated.It is found that the nitrogen content is vital to obtaining high performance magnetic powders based on NdFe10.5V1.5Nx. In comparison with quenching Nd-Fe-B powders, NdFe10.5V1.5Nx powders are characteristics of a larger maximum energy product and a lower cost.Obviously, it is of significant in permanentmagnet applications.