Bulk anisotropic composite Nd13.5Fe80Ga0.5B6∕α-Fe and Nd14Fe79.5Ga0.5B6∕Fe–Co magnets with (BH)max=45–50MGOe have been synthesized by blending a Nd–Fe–Ga–B powder with an α-Fe or Fe–Co powder followed by hot compaction at 600–700 °C and hot deformation (die upsetting) at 850–950 °C with a height reduction of 71%. The composite Nd13.5Fe80Ga0.5B6∕α-Fe and Nd14Fe79.5Ga0.5B6∕Fe–Co magnets show microstructures consisting of a very large soft phase up to ∼50μm, which is more than 1000 times larger than the upper size limit of the soft phase expected from the existing models of interface exchange coupling.