Sm2Fe17Nx (x=3) of 95 vol% purity was obtained by nitrogenation of Sm2Fe17 alloy using a mixed-gas of NH3 (0.35 atm) and H2 (0.65 atm). The saturation magnetization, 4πIs, was 15.5 kG, and the anisotropy field, Ha, was found to be 220 kOe. Aligned powders of Sm2Fe17N3 having an aver age grain size of 3 μm showed the (BH)max, value of 35 MGOe on the assumption that the powder was compressed into full density. The effects of the presence of nonnitrogenated phase and SmFe3Ny phase on magnetic properties of compressed powder magnets are also discussed.