Nanocrystalline (Fe0.5 Co0.5 )86 Hf7 B6 Cu1 HITPERM alloy was investigated as the candidate of soft magnetic material for high temperature applications, compared with Fe86 Hf7B6 Cu1 NANOPERM alloy. Amorphous alloy ribbons were prepared by single-roller melt-spinning technology. Crystallization process of as-quenched ribbon was investigated using differential scanning calorimeter at different heating rates. The coercivity was determined from quasi-static hysteresis loop measured at room temperature using a computerized hysteresis loop tracer. X-ray diffraction with Cu Kα radiation was used to determine the structure. The vibrating sample magnetometer was usedto measure the magnetization as a function of temperature of the nanocrystllized alloys. That Co substitution for Fein alloy enhances the Curie temperature of amorphous alloy and the magnetization of nanocrystalline alloy at hightemperature. After annealing amorphous precursor, the optimum nanocrystalline alloy obtained shows the local minimum coercivity. The coercivity increases with the increasing annealing temperature corresponding to the formation of ferromagnetic phase in the secondary crystallization.