Iron-based amorphous alloys have attracted technological and scientific interests due to their excellent soft magnetic properties. The typical nanocrystalline alloy with the composition of Fe73.5Cu1Nb3Si13.5B9 known as FINEMENT has been studied for structural properties analysis. Recently, it is found that after proper annealing the amorphous alloy like Fe73.5Cu1Nb3Si13.5B9 has a transition to the nanocrystalline state, thus exhibiting good magnetic properties. The alloy in the form of ribbon of 10 mm width and 25mm thickness with the composition of Fe73.5Cu1Nb3Si13.5B9 was prepared by rapid quenching method. The prepared ribbon sample has been annealed for 30 min in a controlled way in the temperature range 490℃ - 680℃. By analyzing X-ray diffraction (XRD) patterns, various structural parameters such as lattice parameters, grain size and silicon content of the nanocrystalline Fe(Si) grains, crystallization behavior and nanocrystalline phase formation have been investigated. In the nanocrystalline state, Cu helps the nucleation of α-Fe(Si) grains while Nb controls their growth, Si and B has been used as glass forming materials. Thus on the residual amorphous, the nanometric Fe(Si) grains develops. From broadening of fundamental peaks, the optimum grain size has been determined in the range of 7 - 23 nm.