Effects of Nb addition and annealing treatment on magnetic properties and microstructure of (Nd0.4Pr0.6)9Fe76–xNbxB15 (x = 0–4) ribbons were systematically investigated by means of vibrating sample magnetometer (VSM) and X-ray diffraction (XRD). The extra phases with nonmagnetic (Nd,Pr)1.1Fe4B4 phase and metastable compound (Nd,Pr)2Fe23B3 crystallized during quenching the Nb-free alloy. Moreover, the nonmagnetic (Nd,Pr)1.1Fe4B4 phase does not diminish during the following annealing treatment. The addition of Nb to (Nd,Pr)–Fe–B alloy suppresses metastable (Nd,Pr)2Fe23B3 and nonmagnetic (Nd,Pr)1.1Fe4B4 phases. The intrinsic coercivity increases from 397 kA·m−1 for the Nb-free sample to 1,091 kA·m−1 for the 4 at% Nb-doped sample optimally annealed. The Nb-free sample has the magnetic properties with Js = 1.04 T, Jr = 0.66 T, and (BH)max = 43.5 kJ·m−3. By comparison, the magnetic properties of the 4 at% Nb-doped sample were 0.97 T, 0.68 T, and 65.7 kJ·m−3, respectively. The significant improvement of magnetic properties mainly originates from the finer grains of the ribbons by introducing Nb.