The invention discloses a method for manufacturing a sendust material and a mu173 sendust magnetic powder core. The specific method includes the steps of a, conducting alloy smelting, wherein the smelting temperature is more than 1400 DEG C, and the time for alloy smelting is more than 50 minutes; b, preparing powder, namely, directly conducting nitrogen spraying to manufacture powder after the alloy smelting is conducted; c, conducting powder reduction, namely, conducting reduction through nitrogen; d, conducting power material inactivation, namely, adding an analysis pure grade phosphoric acid solution to the sendust powder, and conducting uniform mixing, wherein the analysis pure grade phosphoric acid solution accounts for, by weight, 3% to 5% of the sendust powder; e, conducting annealing, namely, placing powder into a nitrogen protection furnace at the temperature of 360+/-30 DEG C; f, conducting insulation coating, namely, adding silicon resin adhesives and powder lubricants, wherein the silicon resin adhesives account for, by weight, 1.5% to 3.5% of the powder, and the powder lubricants account for, by weight, 0.5% to 1% of the powder; g, conducting die pressing forming; h, conducting thermal treatment, namely, placing a formed product into the nitrogen protection furnace at the temperature of 700+/-30 DEG C, and conducting annealing for about one hour; i, conducting surface coating, namely, evenly spray painting a layer of epoxy resin paint on the outer surface of the product.