The magnetostrictions of Sm Fe N and Sm Fe were investigated using strain gauge rotating-sample methods. In a magnetic field of 8 T, the magnetostriction of SmFe is about at 300 K. It becomes positive after nitrogenation [SmFeN is about at 300 K ( T)] due to the crystal field effect and the exchange striction. It was noticed that inverse magnetostriction effect can be used to increase the magnetic alignment and remanence of the bonded magnets. As a result, transverse die-pressing was very effective in increasing the degree of magnetic alignment of SmFeN powders, yielding remanence higher than that obtained by axial die-pressing (H//P). By increasing the degree of magnetic alignment of powders, the maximum energy product of SmFeN bonded magnet was improved by 15%.