We investigated the influence of particle size on the microstructure and magnetocaloric effect of Fe-based alloy powders (11 μm to 100 μm in diameter). The degree of structure order varies with the powder size. The 11 μm to 18 μm powders show the largest peak magnetic entropy change (MEC). Increasing the degree of structure order tends to decrease the maximum MEC. Nevertheless, enhancement of refrigerant capacity and MEC (above 70 K) is achieved when the crystalline phase content is ∼50% (above 75 μm) in the 75 μm to 100 μm powders. Exponent n of the field dependence of MEC increases with the decrease in powder size above 22.5 K. The size dependence of the structure and properties is associated with the fact that a larger particle has a slower cooling rate and takes a longer time to form medium-to-long range ordered structures.