The amorphization and magnetic properties of Fe62Nb38 mechanically alloyed powders were investigated. In the initial mechanical alloying processes, the lattice structure of pure Fe is destroyed due to the cold-welding and fracturing, accompanying the reduction of ferromagnetic properties. The Ms value of Fe62Nb38 powders with ball-milling time t = 6 h is only 48.1 A.m2/kg. With prolongating of mechanical alloying processes, a solid state amorphization reaction (SSAR) takes place and the Fe-Nb ferromagnetic amorphous phase is formed. With the milling time increasing from 6 to 18 h, the satura tion magnetization of Fe62NB38 powders increases with enhancement of the proportion of ferromagnetic amorphous phase in from dilute model. However, the Curie temperature of the Fe62Nb38 amorphous phase is only 206°C, which is much smaller than that of the pure Fe. This implies that the exchange interaction between Fe atoms in amorphous alloyed Fe62Nb38 becomes weak due to the Nb dilution. Investigation shows that the variation of magnetic properties of milled powders is one of important tools for describing the amorphization by mechanical alloying.