In order to improve and stabilize the magnetic properties of nanocomposite Nd2Fe14B/α-Fe magnetic alloys by a compositional adjustment, small amount of Dy and/or Co was added to Nd9Fe84B7 alloys. DTA analysis on the amorphous of the alloys took place as the soft magnetic phases were crystallized, and then the hard magnetic Nd2Fe14B was precipitated from them. While α-Fe and a metastable 1:7 (TbCu7-type) phase were formed simultaneously in Dy and Co-free alloys, they were crystallized separately at different temperatures after Dy or Co was added. This phase separation occurred more clearly in the Dy-treated alloys and the other soft magnetic phase Fe3B was also stabilized by Dy and/or Co. The 1: 7 phase that was stabilized by Dy and/or Co was not eliminated at 700 ℃, decreasing magnetic properties of the alloys. It was eventually disappeared above 725 ℃, but Fe3B was not eliminated even at 750 ℃ when Dy was added more than 0.5 at% or Co was added more than 2.0 at%. Amount of Nd2Fe14B in the alloys tended to increase as Dy addition increased,whereas Co addition did not lead to any appreciable change in the ratio of α-Fe and Nd2Fe14B. Moreover, Dy addition apparently increased coercivity of an alloy while Co addition had a beneficial effect on remanence. The grains in the Dytreated alloys were usually finer than those in the Co-treated alloys. The grain size of both α-Fe and Nd2Fe14B in the alloys exhibiting mr ≥ 0.72 was in the range of 20 ～ 40 nm or even larger 50 nm, which is larger than the theoretical optimum size ( ～ 10 nm). Typical magnetic properties obtained from a Nd7.5Dy1.5Fe82.5Co1.5B7 alloy annealed for 12 min at 725 ℃were iHc=4.85 kOe, Br= 11.32 kG, (BH)max = 15.73 MGOe, and mr=0.73.