The use of metal powders is dynamically increasing in many different fields of research and industry. The development of additive manufacturing technology or innovative thermal spray processes still enhance the range of possible applications. This means that there is a big demand for high quality metal powder materials. Currently, the atomization methods, like water or gas atomization, seem to be most established technologies for metal powder production. This work concerns the development of an innovative technology of metal powder manufacturing, namely ultrasonic atomization. First, the general idea of ultrasonic atomization is discussed. The designing of sonotrode, in order to generate appropriate ultrasonic field responsible for metal stream atomization, is discussed. Then, the ultrasonic set-up was verified by using non-contact fiber optic displacement sensor. Finally, the developed system was preliminary tested under water loading and confirmed positively in terms of ultrasonic atomization capabilities.