This proposal will examine a method of internal temperature compensation in bonded rare-earth permanent magnets. Emphasis will be on neodymium-iron-boron magnets, which have a strong temperature dependence of the spontaneous magnetization in the range of 0 to +150 C. Coarse powders of the main magnetic constituent will be blended with a second hard magnetic material that displays an opposite temperature coefficient of magnetization. Suitable alloy compositions will be identified, a model developed, and blends tested in Phase I.