This paper reviews recent developments in research in nanostructured permanent magnets (hard magnetic materials) with emphasis on bottom-up approaches to fabrication of hard/soft nanocomposite bulk magnets. Theoretical and experimental findings on the effects of soft phase and interface conditions on interphase exchange interactions are given. Synthesis techniques for hard magnetic nanoparticles, including chemical solution methods, surfactant-assisted ball milling and other physical deposition methods are reviewed. Processing and magnetic properties of warm compacted and plastically deformed bulk magnets with nanocrystalline morphology are discussed. Prospects of producing bulk anisotropic hard/soft nanocomposite magnets are presented.