The invention relates to a production method for a magnetic material, in particular to a low-permeability, low-power consumption Fe-Si-Al powder material and a production method thereof. In the process of producing Fe-Si-Al powder, a melt-spinning machine rapid cooling method is adopted to produce a strip, and the cooling speed is 104 DEG C/second to 106 DEG C/second; and moreover, the flat Fe-Si-Al powder is produced by atmosphere-protected mechanical crushing. The invention has the advantages that: the oxygen content of the powder is greatly decreased, the grain size of the product is reduced, consequently, the loss of the Fe-Si-Al product is reduced, and the properties of the product are enhanced.