Fe65Co35 based soft magnetic alloys (SMAs) have been gaining attention for their superior magnetic features and playing significant roles in composite permanent magnets, magnetic storage and automotive electrification technologies. In the present work, the Fe65Co35 alloy were produced by arc melting with subsequent annealing. The effects of arc melting and annealing upon the structural and magnetic properties of the soft magnetic phase of the alloy Fe65Co35 have been investigated. The variation in magnetic and microstructural characteristics with melting and annealing have been observed using the X-ray diffractometer (XRD), scanning electron microscope (SEM), and the vibrating sample magnetometer (VSM). The XRD patterns verified the existence of the Fe65Co35 alloy. After melting and annealing, the alloy surface morphologies were examined using SEM. In this approach, the Fe65Co35 alloy was annealed at 600 °C for 4 h in an argon environment which resulted in the highest saturation magnetization of 237 emu/g and the lowest coercivity of 31 Oe. The rise in saturation magnetization was attributed to the removal of impurities, during the melting and annealing process.