The effect of quench rate on nanostructure and magnetic properties of PrCo5 alloy has been investigated. The increase of quench rate through wheel speed in melt spinning suppresses the formation of the secondary Pr2Co17 and Pr5Co19 phases with low magnetocrystalline anisotropy field and refines the nanostructure. This significantly improves the coercivity, remanence, and energy product. For example, increasing the wheel speed from 30 m/s to 70 m/s increases the coercivity and energy product from 3.2 kOe and 4.0 MGOe to 10.3 kOe and 13.7 MGOe, respectively. The magnetic hardening mechanism appears to be a mixture of reversed-domain-nucleation and domain-wall-pinning. The temperature coefficient of coercivity for the 70 m/s sample is −0.16%/K from 300 to 700 K, which is better than that of sintered SmCo5 magnets. Low temperature coefficients of coercivity and remanence indicate that rapidly quenched PrCo5 ribbons may be suitable for bonded magnets with high operation temperature.