Synthesis of rare-earth-based magnetically hard single-crystal nanoparticles with significant magnetic properties and large quantities is highly challenging. Surfactant-assisted high energy ball milling (HEBM) is usually used for the preparation of separated Sm–Co-based hard nanoparticles. In this study, Sm2Co17 hard nanoparticles have been synthesized by the surfactant-assisted HEBM SmCo5 precursors. Phases, microstructure, particle sizes and magnetic properties of the synthesized Sm2Co17 nanoparticles have been investigated in detail. The results showed that the precursors had great effects on the microstructure of the synthesized Sm2Co17 nanoparticles. The Sm2Co17 nanoparticles prepared by one-step HEBM of ingot powders in heptane for 5h using oleic acid as surfactant had a single-crystal and a coercivity of 8.3kOe. The majority of the Sm2Co17 nanoparticles synthesized using oleylamine as a surfactant showed single-crystal, accompanied by the presence of a few of polycrystalline. In the case of two-step milling (initial low energy ball milling of ingot powders for 18h and then HEBM for 5h), the obtained nanoparticles were polycrystalline and showed a low coercivity. When the precursor was jet-milled SmCo5 powders, the synthesized Sm2Co17 nanoparticles had both single-crystal and polycrystalline nanostructures.