Fe-Al-N films were fabricated by reactive sputtering using a radio-frequency magnetron sputtering system. Theeffects of Al and N content and annealing temperature on microstructure and magnetic properties were investigated.The Fe-Al-N films, which have good soft magnetic properties, consist of nanocrystalline α-Fe grains and a small amountof other phases in the boundaries of α-Fe grains. The average α-Fe grain size is about 10-15nm. A slight amount ofFeN and Al-N compounds precipitate in the boundaries of α-Fe grains and suppress their growth. Annealing improvesthe soft magnetic properties slightly by releasing the residual stress and reducing defects.