It is known that Ni–Fe based alloys (permalloys) are important soft magnetic materials, which have been widely applied in the field of electronic devices and industry. The most suitable permalloys for application exhibit low value of coercivity and magnetostriction (for about 80 at% Ni), high saturation magnetic induction (for about 50 at% Ni), higher electrical resistivity (for about 35 at% Ni). The aim of this work was to investigate the structure and magnetic properties of Ni 81 Fe 19 (wt%) compacted powder material in the form of small cylinders.