The properties of ferrite granules have a marked effect on the handling of granules and magnetic properties of sintered bodies. However, the factors which affect the properties of granules have not been clear. In this paper, the effect of water content on the properties of MnMgZn ferrite granules has been investigated with special reference to the packing behavior. The granules which were different in water content were characterized by apparent density, flow rate and friction force. In case of loose packing of granules, apparent density and flow rate decreased and friction force increased as water content increased. However, water which was contained within ferrite granules decreased friction force in case of dense packing. Tapping behavior of MnMgZn ferrite granules could be fitted by Kawakita's expression. It was found that the constant "a" from Kawakita's expression indicated flowability of granules in tapping process.