The effects of oxidation of DyH3 with respect to dysprosium addition to Nd–Fe–B sintered magnets are examined. Samples sintered with the addition of freshly milled dysprosium hydride, dysprosium hydride exposed to air at room temperature for 15 min and dysprosium hydride exposed to air at 100 ?C for 3.5 hours are studied from the aspects of magnetic properties, microstructures, and their degradation, respectively. It is found that some oxidized dysprosium is distributed in the Nd-rich phase; hence, the decrease of remanence occurred. The degradation results indicate that pre-oxidised dysprosium can be a major factor in increasing the corrosion rate. The microstructures and corrosion acceleration test suggested that the oxidation is detrimental to remanence.