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The magnetic alloy Super Sendust (SS(I)) has a high saturation magnetization and high permeability. This paper reports on the magnetic properties of SS(I)/Fe multilayer thin films prepared by the ion beam shuttering method. As-deposited SS(I)(130Ã )/Fe(130Ã ) multilayer thin films have a saturation magnetization of 1350 emu/cc, a coercive force of 2.2 Oe, and an effective permeability of 700. Multilayer thin film annealed at 350Â°C in vacuum for one hour exhibits a low coercive force of 0.5 Oe and a high effective permeability of 1250. Based on experimental results in which the soft magnetic properties were improved by heat treatment, it seems that internal stress relaxation is caused by a decrease in the interplanar spacing.