Fe1-xPdx alloys have been produced by DC triode sputtering. The single bcc phase is obtained for x=0-0.25. With increasing χ, the lattice constant, a, increases, while the magnetization, Is, monotonically decreases, where the estimated Is value for Fe is about 1800 G, being larger than that of pure Fe. The a and Is increase by annealing below 500 K and decrease by annealing above 500 K. The d-spin band polarization of Fe atoms is probably enhanced by both the lattice expansion and the increase in the Pd atom number at the nearest-neighbor sites of Fe atoms. Since the magnetostriction increases and the coercive force, Hc, decreases with increasing χ, Hc is not dominated by the magnetoelastic interaction but is suppressed by the reduction of crystal grain size. By annealing above 600 K, Hc rapidly increases due to the precipitation of the ordered FePd phase. © 1990 The Japan Society of Applied Physics.