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Effect of tension coating on iron loss has been investigated as a function of excitation induction and frequency in thin-gauged 3% silicon steel sheets and iron loss after tension coating has been evaluated by loss separation method. In order to additionally reduce iron loss, tension coating without forsterite base coating was applied on surfaces of the thin grain-oriented sheets. Reduction in total loss due to the tension coating results from combination of hysteresis loss and anomalous loss, but the latter plays a major role in the loss reduction. The coated sheets show a maximum iron loss reduction of 18% at an excitation induction of 1.0 T and an excitation frequency of 60 Hz.