Application of Hankel transform in the interpretation of magnetic anomaly, is illustrated for a vertically magnetized semi-infinite vertical rod. Theoretical anomaly curves, generated using linear digital filter algorithm for the three synthetic model, have been used for the estimation of depth and magnetic moment using the Hankel transform approach. The interpreted results obtained by the Hankel transform technique match significantly well with those selected for the generation of synthetic anomaly curves. Comparison of Hankel transform results with the corresponding Fourier transform results, indicates that the application of Hankel transform is more suitable for the estimation of depth and magnetic moment of a vertically magnetized semi-infinite vertical rod.