In order to improve solubility and magnetic properties, the ball milling technology was used for the production of 50Cu–40Fe–10Mn (wt%) alloy. The effect of Mn content on the microstructure and magnetic properties of Cu–Fe alloy was also investigated in detail. Microstructure and magnetic properties of the alloy were analyzed by X-ray diffraction, differential scanning calorimetry, high resolution transmission electron microscopy and superconducting quantum interface device magnetometry. The results showed that a complete solid solution of the alloy was produced after 30h of milling. Quantitative phase analysis of X-ray diffraction data revealed that the milled alloy obtained after isothermal annealing at 550°C for 1h consisted of Cu (54.52wt%), α-Fe (36.49wt%) and MnO (8.99wt%). The milled alloy obtained after annealing at 450°C for 1h leads to the maximum values of magnetic properties such as coercivity=438Oe, remanent magnetization=14.3emu/g, and saturation magnetization=51emu/g.