The traditional Fe-based magnetic abrasive powders (MAPs) are prone to degrade by corrosion and oxidation. The extremely low stability to some extent limits the development of magnetic finishing. In this study, a new kind of 410 stainless steel-based spherical MAPs with core–shell structure was synthesized by gas nitriding. The nitride layer shows the dendrite structure containing (Fe, Cr)4N phase and lath-like CrN phase. The Zirconium tube roughness can be reduced from 0.280 to 0.153 μm. The origin of the good finishing performance was investigated through the Vickers hardness and nanoindentation tests.