The present paper reports the effect of molybdenum disulfide (MoS2) on magnetic and mechanical properties of neodymium iron boron (NdFeB) bonded magnet. Powder metallurgy process has been used to prepare the test samples containing 0.0, 0.5, 1, 1.5 and 2 percentage of MoS2. Compact and hardness tests have been performed to measure the physical properties of samples. Saturation magnetization, remanence and intrinsic coercivity have been checked using vibrating sample measurement (VSM) test