An efficient process for producing fine nickel powder, capable of metallizing the powder at low temperature to prevent its sintering, and fine nickel powder produced by the process, composed of particles having a flat shape, diameter of limited variations and uniform thickness, and suitable for internal electrodes for laminate ceramic capacitors of high electric capacity. The process comprises a step for forming a nickel compound coated with gelatin by adsorbing gelatin on preformed nickel compound particles with different size and shape (Step (A)), and another step for converting said nickel compound coated with gelatin into fine particles containing metallic nickel and nickel oxide by heating the nickel compound coated with gelatin produced in Step (A) in an inert gas atmosphere (Step (B)). It may include an additional step (Step (C)), subsequent to Step (B), for completely reducing nickel oxide in said fine particles by heating at temperature lower than that for Step (B) in a reducing gas atmosphere.