A magnetic recording medium (10) includes a nonmagnetic substrate (1), an anti-ferromagnetic layer (2) arranged on the nonmagnetic substrate, and a magnetic recording layer (3) formed on the anti-ferromagnetic layer. The magnetic recording layer comprises a plurality of carbon nanotubes (31) extending perpendicularly from the anti-ferromagnetic layer and a plurality of magnetic nano-particles (32) contained inside the carbon nanotubes. A method of manufacturing a magnetic recording medium, according to one preferred embodiment, includes providing a nonmagnetic substrate; arranging an anti-ferromagnetic layer on the nonmagnetic substrate; forming a plurality of carbon nanotubes extending perpendicularly from the anti-ferromagnetic layer; and forming a plurality of magnetic nano-particles contained in the carbon nanotubes. The present magnetic recording medium can decrease noise, improve bit storage density, and has excellent thermal stability.