Soft magnetic properties of Fe82Mo7B10Cu1 nanocrystalline alloy were studied as a function of cooling condition. The results show that higher permeability and relaxation frequency can be obtained by the two-step cooling method, and the pinning field of the sample obtained by this method is smaller than that of the furnace-cooled and water-quenched samples. This phenomenon was interpreted in terms of internal stress and the magnetic ordering of the residual amorphous phase. The two-step cooling treatment is an effective way to improve the soft magnetic properties of Fe82Mo7B10Cu1 nanocrystalline alloy.