When Permalloy films are annealed, theHcandHkof the as‐deposited films are observed to decrease and &agr;, the dispersion angle, is seen to increase. Electron diffraction studies show the development of long‐range order in these films with annealing, as evidenced by the appearance of superlattice lines. The changes inHkand &agr; can be partly explained by this transition from short‐ to long‐range order, and a model is proposed.