The influence of the alloy granulation grade, temperature and surface oxidation on the kinetics and the course of the fracture processes during the hydrogenation of Nd16-xDyxFe76B8 (x=0–3) alloy was studied. The average particle sizes of the alloy were 1 mm, 5 mm and 3 cm and the temperature range between 20 and 200 °C. Pre-oxidation times of the alloy were 0, 5, 10, 20, 30, 1 20 and 1200 min. No influence of the alloy composition on the kinetics and fracture processes during the hydrogenation was observed. An influence of the granulation grade of the alloy particles on the reaction rate was established and an influence of increasing temperature on the shortening of the incubation period was observed. It was also shown that the incubation time is influenced by surface oxidation. A tentative model of the hydrogenation-decrepitation process is suggested.