Nickel(Ni) powders were prepared from the mixture of nickel chloride and magnesium stearate by a hydrogen reduction process, and the effect of reaction temperature and the addition of magnesium stearate on the chracteristics of the powders were investigated. The effect of size reduction of nickel particles was observed in the presence of magnesium stearate owing to the inhibition of excess growth of paricles. The size reduction and the degree of agglomeration of the particles affected by the amounts of liqiud phase, which related to the increase of magnesium stearate.