Hot stage in transmission electron microscope has been used to study the structure and stability of Nd-rich phase in NdFeB magnet. The present observation shows that the so-called complex cubic phase is in fact the prototype of Mn 2 O 3 (space group Ia 3) with lattice parameter of a ¼ 1:08 nm: The Nd-rich phase with P 3m1 structure (h-Nd 2 O 3 ) was first observed to be transformed from the BCC phase after in situ heating over 400 1C. The orientation relationship between these two structures satisfies as follows: (0 0 0 1) HCP //(2 0 0) BCC , ð10 1 0Þ HCP ==ð0 2 0Þ BCC ; ½ 1 2 1 0 HCP ==½0 0 1 BCC : It is argued that the h-Nd 2 O 3 was arising from the oxidation of the BCC Nd-rich phase rather than from Nd 2 Fe l4 B matrix phase as suggested in the literature. r