Spherical or nearly regular hexagonal Nd powders with the size of 20-150 nm, Fe powders with the size of 20-150 nm and Mo powders with the size of 80-100 nm were prepared by Argon and Hydrogen arc plasma. The nanostructural NdFe10.5Mo1.5 compound with ThMn12-type structure have been formed after having been mechanically alloyed for 6-12 hours and crystallized at 700-850 degreesC under high purified Argon atmosphere. After having been nitrided at 400-500 degreesC for 2 hours, NdFe10.5Mo1.5Nx nanopowders with ThMn12-type structure can be obtained, which have excellent permanent magnetic properties such as iH(c) within range of 360.4-716.2 kA/m (4528-8997 Oe), B-r within range of 0.6363-0.9831 T (6363-9831 Gs), (BH)(max) within range of 42.87-166.2 kJ/m(3) (5.386-20.88 MGOe).