A high-strength, high-permeability steel sheet for picture tube band comprises, in mass percent, C: 0.003-0.010%, Si: 0.5-1.0%, Mn: 1.0-2.0%, P: 0.04-0.15%, S: not more than 0.02%, Al: not more than 0.030%, N: not more than 0.004% and the balance of Fe and unavoidable impurities, has a chemical composition satisfying C.times.Mn.times.P.gtoreq.2.5.times.10.sup.-4, and has a ferrite crystal grain diameter of 10-100 .mu.m and a yield stress of 300 N/mm.sup.2 or higher, and preferably has a specific permeability .mu.0.35 in a DC magnetic field of 0.35 Oe of 400 or higher. The steel sheet can be produced by regulating the hot-rolling coiling temperature to 600-700.degree. C. and selecting an appropriate combination of the cold rolling reduction ratio and a final annealing temperature in the range of 750-900.degree. C.