A method for manufacturing a rare earth sintered magnet comprising the steps of compression molding a rare earth alloy powder into a compact, and heat treating the compact for sintering, the compression molding step using a powder molding apparatus comprising a die and an upper punch and a lower punch adapted to move relatively up and down, the die having a through-hole surrounded by an interior surface and extending between upper and lower ends, the upper punch having a lower surface, the lower punch having an upper surface, wherein the lower punch is provided with a band-form channel around its periphery, a pad fitted in the channel made of elastic material selected from felt, non-woven fabric or sponge and able to be impregnated with at least 0.01 g/cm 2 of a lubricant, and a lubricant conduit (22,23) for feeding lubricant to the pad, the lubricant is fed to the pad through the lubricant conduit (22,23) to impregnate the pad with the lubricant and the lubricant is applied from the pad to the die interior surface as the lower punch is relatively moved up and down in the die during a molding operation; the compression molding step further comprising: moving the lower punch into the die from below to define a cavity between the upper surface of the lower punch and the interior surface of the die, introducing said rare earth alloy powder into the cavity, relatively moving down the lower punch to define above the rare earth alloy powder a temporary cavity for allowing the upper punch to move into the die, moving the upper punch into the temporary cavity from above the die and setting the upper punch at a position where the upper punch abuts against the top of the rare earth alloy powder, and then relatively moving down the upper punch to compress the rare earth alloy powder between the upper and lower punches (3,2) under pressure to mold the rare earth alloy powder into a compact of desired shape, relatively moving up the upper punch until the die is opened at the upper end, relatively moving up the lower punch to eject the compact, and removing the compact from the upper end of the die. the lower punch is provided with a band-form channel around its periphery, a pad fitted in the channel made of elastic material selected from felt, non-woven fabric or sponge and able to be impregnated with at least 0.01 g/cm 2 of a lubricant, and a lubricant conduit (22,23) for feeding lubricant to the pad, the lubricant is fed to the pad through the lubricant conduit (22,23) to impregnate the pad with the lubricant and the lubricant is applied from the pad to the die interior surface as the lower punch is relatively moved up and down in the die during a molding operation; the compression molding step further comprising: moving the lower punch into the die from below to define a cavity between the upper surface of the lower punch and the interior surface of the die, introducing said rare earth alloy powder into the cavity, relatively moving down the lower punch to define above the rare earth alloy powder a temporary cavity for allowing the upper punch to move into the die, moving the upper punch into the temporary cavity from above the die and setting the upper punch at a position where the upper punch abuts against the top of the rare earth alloy powder, and then relatively moving down the upper punch to compress the rare earth alloy powder between the upper and lower punches (3,2) under pressure to mold the rare earth alloy powder into a compact of desired shape, relatively moving up the upper punch until the die is opened at the upper end, relatively moving up the lower punch to eject the compact, and removing the compact from the upper end of the die. moving the lower punch into the die from below to define a cavity between the upper surface of the lower punch and the interior surface of the die, introducing said rare earth alloy powder into the cavity, relatively moving down the lower punch to define above the rare earth alloy powder a temporary cavity for allowing the upper punch to move into the die, moving the upper punch into the temporary cavity from above the die and setting the upper punch at a position where the upper punch abuts against the top of the rare earth alloy powder, and then relatively moving down the upper punch to compress the rare earth alloy powder between the upper and lower punches (3,2) under pressure to mold the rare earth alloy powder into a compact of desired shape, relatively moving up the upper punch until the die is opened at the upper end, relatively moving up the lower punch to eject the compact, and removing the compact from the upper end of the die.