This research involves using molten magnesium (Mg) to remove neodymium (Nd) from NdFeB magnet scrap by diffusion. Mg was melted over pieces of NdFeB scrap and held at temperatures in the range 675–705 °C for 2–8 h. The Mg was allowed to solidify, and the castings were then sectioned and characterized using scanning electron microscopy, x-ray diffraction, and chemical analysis. Nd was found to have diffused out of the solid scrap into the molten Mg. The thickness of the diffusion layer was measured, the diffusion of Nd through the NdFeB scrap into liquid Mg was described, and the diffusion coefficient of Nd in liquid Mg was estimated.