Abstract: The microstructure of differently annealed nanocrystalline Fe72.7Cu1Nb1.8Mo2Si13B9.5 alloy was investigated by using Mssbauer spectroscopy and transmission electron microscope. The specimens were isochronally annealed at temperatures between 480℃ and 600℃ for 0.5 h. The experimental results show that the microstructure mainly consists of the nanoscale bcc α-Fe(Si) grains and the residual amorphous matrix phase. A trace paramagnetic phase was found for annealing about above 500℃. The volume fraction of cr-Fe(Si) grain increases with increasing annealing temperature, whereas the average size of grain is almost unchanged above 480℃ up to 580℃. The calculated thickness of the intergranular layer of the residual amorphous matrix clearly decreases with increasing annealing temperature.