The invention provides ultrafine spheroidized rare earth polishing powder and a process for making the same. The process comprises the following steps that: one of or the mixture of ammonia water, ammonium bicarbonate and ammonium carbonate is used as precipitant; ammonium salt and fluoride ions are added into precipitated slurry to adjust the ionic strength in mother liquid, so as to increase the surface electrical property of solid particles in the slurry; after high temperature aging, the ultrafine rare earth polishing powder with good dispersity and high spheroidization degree can be obtained by filtering the slurry, drying, burning, ball-milling and sieving filter cakes. The average particle size of the obtained polishing powder is between 0.02 mu m and 2.0 mu m, wherein the specific surface area BET is more than 0 and less than 10 m<2>/g, and the powder is in a well-dispersed spherical shape. The powder is used for polishing optical glass, crystal, display screens, etc., strong in cutting force, few in scratch and long in service time.