The nanocrystalline Fe–N films with a mixture of ɛ-Fe 3N and α-Fe phase synthesized on NaCl (1 0 0) substrate by dc magnetron sputtering were annealed at different temperatures in order to investigate their thermal stability and magnetic properties. The structure, morphology, and magnetic properties of the samples were characterized using X-ray diffraction (XRD), transmission electron microscopy (TEM), and superconducting quantum interference device (SQUID). The results showed that the release of nitrogen from nanocrystalline ɛ-Fe 3N phase during annealing led to the formation of γ′-Fe 4N phase. At annealing temperature of 350 °C, nanocrystalline γ′-Fe 4N phase tended to decompose to the more stable phase α-Fe. This transition deposition temperature was lower than what had been reported that the single-phase γ′-Fe 4N was still stable at 400 °C. As the annealing temperature increased, the saturation magnetization (Ms) for the films with a mixture of ɛ-Fe 3N and α-Fe phase did not change significantly, but decreased drastically for the films with a mixture nanocrystalline γ′-Fe 4N and α-Fe phase. It was also found that both the relief of the stress and an increase in grain size during annealing had significant influences on the coercivity for the films with mixed ɛ-Fe 3N and α-Fe phases. The coercivity of the films decreased when the phase transformation from nanocrystalline ɛ-Fe 3N phase to γ′-Fe 4N phase occurred.