The invention discloses an iron-based soft 
magnetic composite. The iron-based soft 
magnetic composite comprises atomized iron-based 
powder, ultra-fine high 
melting point inorganics and 
lubricant, wherein 
phosphate and an organic 
silicone resin insulating layer cover the surface of the atomized iron-based 
powder. A preparation method of the iron-based soft 
magnetic composite comprises the following steps that the atomized iron-based 
powder and the ultra-fine high 
melting point inorganics are fully mixed to obtain a mixture, high-temperature heating treatment is conducted on the mixture in a non-oxidizing 
atmosphere, heat preservation is conducted on the mixture for above 30min, the mixture is cooled to enable the temperature of the mixture to be the 
room temperature, surface phosphating treatment and organic 
silicon resin covering are conducted on obtained 
iron powder isolated through the inorganics, and then pressing annealing is carried out. Due to the fact that the 
iron powder is isolated through the ultra-fine high 
melting point inorganics, annealing can be conducted on the 
iron powder at a high temperature of about 1000 DEG C, 
sintering cannot happen, and the iron powder has high 
compressibility; an insulating layer covers the surface of the iron powder after phosphating treatment is conducted on the iron powder, 
phosphide has a lubricating effect on the iron powder, 
internal friction is reduced in the pressing process, and the compaction density of the powder is improved; due to the fact that organic 
silicon resin is added, distribution of the insulating layer on the surface of the iron powder is improved, and the soft magnetic property is optimized after forming 
sintering is conducted on the powder.