The invention discloses a functional material and a preparation method. The functional material is blended by components in percentage by mass as follows: 34%-36% of Nd, 0.01%-0.15% of Nb, 0.01%-0.15% of Gd, 0.01%-0.15% of Ti, 0.01%-0.15% of Ni, 1%-4% of Bi, 1%-4% of Dy, 0.01%-0.15% of Cr, 4%-7% of B and the balance of Fe. The functional material has uniform tissue and strong structure, the corrosion resistance of the material can be improved, and the magnetism is improved. The permanent magnet material has good stability and practicability and can be widely applied to various fields such as electronic devices, aerospace engineering, computer equipment, magnetic separators, communication equipment, medical equipment, electric bicycles, electronic toys and the like.