A method for producing powder of a thermoplastic elastomer having a sphere-reduced average particle diameter of 700 .mu.m or less by an under water cut method which comprises discharging the thermoplastic elastomer in melt state through a plurality of orifice in a dice in into water, and cutting the discharged matter with a cutter blade rotating along the die surface to obtain powder of the thermoplastic elastomer, wherein the method satisfies the following conditions (a) and (b): (a) the temperature of the thermoplastic elastomer directly before the die is from 120 to 220.degree. C., and (b) the temperature of a die is from 230 to 350.degree. C.
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