It was investigated the effect of ultrasonic treatment on magnetic property of ultra fine magnetic Fe powders ($alpha$-Fe) for magnetic tape. The properties were characterized with vibrating sample magnetometer (VSM), particle size analyzer (PSA) and scanning electron microscope (SEM). At 4hours ultrasonic treatment of 70 kHz, magnetic properties such as squareness ratio (S.Q. : 0.8868), orientation ratio (O.R. : 2.45) and switching field distribution (S.F. D. : 0.394) before taping were relatively enhanced. Cumulative particle size distribution of less than 5$mu extrm{m}$ fine powder was above 90% below 1 hour leaving time after ultrasonic treatment and it was supposed that ultrasonic treatment prevent aggregation. The magnetic values of S.Q. and S.F.D. of tape manufactured at 70 kHz and 4hour ultrasonic treatment were improved from 0.7747, 0.3818 to 0.8037, 0.3706, respectively. Electro-magnetic property used as in-output signal characteristic was improved, which showed that ultrasonic treatment developed the magnetic properties.