In current work, Nd2Fe14B nanoparticles was synthesized by sol-gel method. Dysprosium powders were added into Nd2Fe14B nanoparticles by mechanical alloying process in order to enhancement of coercivity. The phase analysis, structure, and magnetic properties of annealed (Nd1−xDyx)2Fe14B nanoparticles with different Dy-content (x=0.1, 0.2, 0.3, 0.4, 0.5, 0.6) were investigated by employing X-ray diffraction, X-ray photoelectron spectroscopy, energy dispersive spectroscopy, field emission scanning electron microscope, transmission electron microscope and vibrating sample magnetometer techniques. The results showed that with an increase in Dy amounts, the coercivity of particles increased from 2.9kOe to 13.4kOe and then decreased to 5.6kOe. By adding an optimum amount of Dy (x=0.4), the coercivity was significantly increased from 2.9kOe to 13.4kOe. The average particle size of annealed (Nd1−xDyx)2Fe14B nanoparticles was below 10nm. Magnetization reversal studies indicate that the coercivity of milled and annealed (Nd1−xDyx)2Fe14B nanoparticles is controlled by the nucleation of reversed magnetic domains. The experimental results in the angular dependence of coercivity for (Nd1−xDyx)2Fe14B permanent magnets showed that the normalized coercivity of the permanent magnets Hc(θ)/Hc(0) increases from 1 to about 1.2–1.5 with increasing θ from 0 to about π/3, for x=0.4–0.6.