L10 ordered FePt is one of the most promising materials for spintronic and recording media applications. In the present work, the mechanism of L10 phase transformation in FePt based films with varying initial structures is examined at the nanoscale to understand the ordering process using synchrotron based GIXRD, MOKE, VSM, and techniques with sub nanometer depth selectivity like XRR and SIMS. Precisely controlled compositions of the films are deposited using magnetron sputtering. Rapid thermal annealing is used for post-deposition processing. It is evaluated experimentally that for a shorter annealing time of 70 s at 400 °C, besides volume diffusion, short circuit diffusion paths along the intercrystallite region owing to the presence of nanostructured grains play a dominant role in alloying behavior. A study of the L10 ordering process reveals the crucial role of film structure in controlling the transformation kinetics, texturing of nanograins, and magnetic coercivity. Diffusion studies disclose that type B diffusion kinetics is activated for the annealing time during which L10 transformation occurs in the films.