The magnetic properties of compressed powder cores made of iron powder with high compressibility were investigated with the goal of making them practical in electric motors. An electrolytic iron powder and an atomized iron powder with a finely powdered resin were compacted under a pressure of 6 tons/cm2. The influence of iron particle size on magnetic properties was more marked in the atomized iron powder core. For the electrolytic iron powder core, magnetic properties perpendicular to compacting direction were superior to those of the atomized iron powder core, but higher magnetic anisotropy was induced. The compressed iron powder cores were used successfully for small electric motors.