A study was made on the fabrication of nanostructured Fe-Co powders by mechanical alloying and their magnetic properties. Microstrural development during the process of MA was inverstigated by means of X-ray diffraction, differential thermal analyzer, scanning electron microscopy and transmission electron microscopy. The magnetic properties of NS Fe-Co powders were evaluated through the measurements of the saturation magnetization as well as the coercivity . The average grain size calculated from line braodening in XRD peak was about 10nm or less and confirmed by TEM. In this experiment, two different milling methods (cycle opertion and conventional milling) were used. Cycle operation had an advantage over the conventional milling method in that more refined powders can be obtained. Solid state alloying of the components was confirmed from both the change of the saturation magnetization and the change of lattice parameter with Co contentration. Maxium was obtained at the composition of 30at.%Co. Relatively high coercivities of 10~150e were obtained for the compositions investigated, and this seems to be due to the high amount of internal strain introduced during milling.