Effects of Zr addition and annealing on the magnetostriction of Tb-Dy-Fe alloy crystals were investigated. The (Fe1.9Tb0.27Dy0.73)1-xZrx (x: 0, 0.0125, 0.025, 0.05, 0.075) crystal fibers about 2 mm in diameter were grown by the micro-pulling-down (μ-PD) method. The grown crystals showed the low chemical segregation along longitudinal direction and the growth direction was oriented in the <311> direction. The saturation magnetostriction of the fiber increases with increasing the Zr content, annealing temperature and annealing time. The fiber-shape Tb-Dy-Fe crystals prepared by the μ-PD method are promising for the applications as sensors and actuators.