Soft magnetic materials are important functional materials in the electrical engineering, radio, and high-tech fields, but thin and brittle flakes present challenges to the manufacturing industry. In this study, the effect and mechanism of saccharin sodium in reducing the internal stress of Fe-Ni magnetic films were analyzed. The effects of the pH value, temperature, and the concentration of saccharin sodium on the deposition process of Fe-Ni alloys were investigated. The polarization curve of the Fe-Ni alloy deposition process was measured by using a multifunctional electrochemical workstation, and the morphology and crystal structure were measured by a scanning electron microscope (SEM) and X-ray diffraction (XRD). The results show that saccharin sodium significantly reduced the stress of the iron-nickel magnetic film; the mechanism through which the internal stress was reduced is analyzed in this paper. Briefly, the Fe2+ and the amino group of saccharin sodium synthesized a metal complex with positive charge on the surface of the electrode, which prevented the hydrogen ions from approaching the cathode and increased the discharge activation energy of the hydrogen ion, which reduced the hydrogen evolution and improved the internal stress of the coating. This research will help to solve the challenges of producing magnetic film, and promotes the application of new stress-reducing agents.