In order to study the texture evolution and magnetostriction behavior in the rolled Fe–Ga–B sheets during the heat treatments from low to high temperatures, (Fe81Ga19)98B2 sheets were prepared and investigated. The phase structure, recrystallization, grain size, texture evolution, and magnetostriction behavior during the annealing from 525 to 1200 °C for 1–5 h were investigated using X-ray diffraction, electron backscattering diffraction, and standard strain-gauge measurements. Results indicated that the primary recrystallization temperature for 1-h annealing was found as 525–575 °C in (Fe81Ga19)98B2 sheets. Annealing the sample below 575 °C for 1 h, the release of rolling stress and increase of 〈100〉 η-fiber texture during the primary recrystallization jointly resulted in a rapid improvement in magnetostriction. After annealed between 575 and 1100 °C for 1 h, the grains of the sheets underwent a normal growth, and the three (α-, γ- and η-fiber) types of textures kept an approximate balance, leading to a plateau of magnetostriction around 75 ppm. When the abnormal grain growth proceeded above 1100 °C for 1 h, the proportion of η-fiber texture markedly increased, and the magnetostriction was subsequently increased to 97 ppm. For longer annealing durations, the strong ideal cube texture (η-fiber) was firstly formed and then changed to undesired texture (γ-fiber), producing a corresponding magnetostriction peak of 136 ppm at 2 h for the annealing at 1200 °C. The clear correlation among heat treatments, recrystallization, texture, and magnetostriction provides an essential understanding for Fe–Ga–B alloy sheets.