In the present study, we systematically investigated the effect of Mn addition on nitrogenation behavior and magnetic properties of Sm-Fe powders produced by reduction-diffusion process. Alloy powders with only $Sm_2(Fe,Mn)_{17}$ single phase were successfully produced by the reduction-diffusion process. The coercivity of $Sm_2(Fe,Mn)_{17}$ powder rapidly increased during nitrogenation and reached the maximum of 637 Oe after 16 hours. After further nitrogenation, it decreased. In contrast, the coercivity of $Sm_2Fe_{17}$ powder gradually increased during nitrogenation for 24 hours. The coercivity of $Sm_2(Fe,Mn)_{17}$ powder was higher than that of $Sm_2Fe_{17}$ powder at the same condition of nitrogenation. It was considered that the Mn addition facilitates the nitrogenation of $Sm_2Fe_{17}$ powder and enhances the coercivity.