The effect of grain boundary diffusion on the magnetic properties and microstructure of Nd-Fe-Co-B sintered magnets is investigated using Dy70Al10Cu20 alloy as the diffusion source. After the secondary annealing of the Nd-Fe-Co-B sintered magnet (Hcj = 7.94 kOe), its coercivity is substantially increased to 13.10 kOe. Following post-diffusion annealing, the coercivity of the sintered magnet significantly increased to 20.86 kOe. Microstructure analysis revealed that after the second annealing, the main phase grains in the magnet were connected but lacked thin intergranular phases. The distribution of Co was uneven, with an abundance of soft magnetic phases rich in Co, which was not conducive to improving coercivity. After diffusion, Dy formed a shell structure with high magnetic crystal anisotropy on the outer side of the main phase grains, leading to a significant increase in coercivity. Al and Cu entered the interior of the magnet, reducing the melting point of the grain boundary phase and promoting the uniform distribution of Co through the flow of the liquid phase. A large amount of thin continuous intergranular phase is generated inside the magnet, which helps reduce the exchange coupling between hard magnetic grains. The experimental results indicate that the Dy-Al-Cu alloy can effectively enhance the grain boundary structure of Nd-Fe-Co-B magnets, reduce the abundance of Co-rich phases, and improve the coercivity of the magnet.