Magnetic and structural properties of sintered NdFeB magnets with addition of various amounts of DyGa as a separate powder are studied and compared with single-powder magnets of the same nominal composition. When the magnets are annealed above 640°C, the coercivity decreases strongly as compared to magnets annealed below 640°C. Decomposition of the ␦ phase ͑Nd 6 Fe 14Ϫx Ga x ) accompanies this drop. Measurements of coercivity as a function of temperature show that the decomposition of the ␦ phase does not increase the effective demagnetization factor, but enlarges either the magnetic inhomogeneous region at the grain surface or the exchange coupling between the grains. Line faults, which are present within the Nd 2 Fe 14 B grains when the magnet is annealed below 640°C, do not act as pinning centers. Phase analysis and diffusion profiles of the Dy and Ga concentration within the grains are made using electron probe micro-analysis. This shows that Ga forms Nd 3 Ga 2 and Nd 6 Fe 12.7 Ga 1.3 as intergranular phases. Its concentration within the ⌽ phase is significantly lower than in the ⌽ phase of single-powder magnets. At 1090°C, a diffusion coefficient for Ga of Dϭ2.5Ϯ0.1ϫ10 Ϫ15 m 2 /s is found. Dy is shown only to be present in that part of the Nd 2 Fe 14 B grain which has precipitated from the liquid during sintering. At the boundary of the Dy-free center and the outer part of the grain, an increased Dy concentration is found.