The M1 strength distribution is studied in rare‐earth nuclei, starting from the Nilsson model and using the Quasi‐Particle Random Phase Approximation (QRPA), including monopole as well as quadrupole pairing, Coriolis mixing and residual quadrupole and spin‐isospin interactions. For the nucleus164Dy the importance and effect of the different terms in the Hamiltonian are studied. Results are compared with experimental observations. Special attention is given to the higher‐lying spin strength in view of a recent (p,p’) experiment performed at TRIUMF on154Sm.