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Magnetic properties and internal stresses of Ni-Fe-In thin films prepared by electroplating were investigated along with Ni-Fe films. In both films magnetostriction constants and internal stresses increased through annealing. Also coercive forces increased with increasing magnetostriction constants. Ni-Fe-In ternary permalloy films were found to have lower coercive forces after annealing than Ni-Fe binary permalloy films at same magnetostriction constants. This is because indium prevents grain growth during annealing.