The origin of the variation of initial permeability in manganese-zinc ferrite polycrystals with a content of hematite was investigated. Initial permeability showed maximum with hematite content while there was no significant change in microstructure. Saturation magnetization increased with hematite content. So the variation of initial permeability was not explained on the basis of microstructural change or saturation magnetization. Temperature dependence of initial permeability revealed magnetocrystalline anisotropy was the origin of the variation of initial permeability. The change in magnetocrystalline anisotropy was ascribed to the variation in ferrous ion concentration. Therefore the variation of initial permeability in manganese-zinc ferrite polycrystals with a content of hematite was due to ferrous ion concentration via magnetocrystalline anisotropy.