Tb0,3Dy0,7Fe1,9 composites attract much attention due to their large magnetostriction, and small eddy current losses. In this work intelligent polymer matrix composite materials consisting of Tb0,3Dy0,7Fe1,9 particles was obtained by mixing epoxy resin and Tb0,3Dy0,7Fe1,9 powder with grains from 38 to 106 μm. The relationships among the manufacturing technology of these materials, their microstructure, as well as their magnetostriction were evaluated. Resulting composites can extend the possibilities of application the magnetostrictive materials simultaneously reduce the cost of Tb0,3Dy0,7Fe1,9.