The effect of the annealing on the phase composition and magnetic properties of nanocomposite melt-spun Nd 9Fe 84Zr 1B 6 ribbons has been investigated. From the X-ray diffraction studies confirmed be thermomagnetic curves measurements results that the microstructure of the material investigated is composed of a mixture of magnetically hard Nd 2Fe 14B and soft α-Fe, Fe 3B nanosized grains. The small amount of undesirable Nd 2Fe 23B 3 metastable phase has been found which do not decompose at the highest annealing temperature. The hysteresis loop measurements certify that the ribbon annealed at 863K show the best coupling between the hard and soft magnetic phases and thus the highest coercivity of 0.38T. The grain sizes increase with increasing annealing temperature causing the coercivity to be decrease.