The effect of Zr additions on the microstructure and magnetic properties of melt-spunSm2Fe(15.5−x)ZrxAl1.5C1.5alloys has been systematically studied. The additions of Zr toSm2(Fe,Al,Zr)17C1.5alloys result in the precipitation of a ZrC compound within intergranular regions. It is found that the Zr addition is helpful in eliminating free iron dendrites, and effective on inhibiting grain growth during annealing. The x-ray diffraction analysis and transmission electron microscopy observation show that annealed ribbons with the Zr addition consist of a multiphase of the 2:17-type carbide, &agr;-Fe and ZrC compound with an average grain size of about 25–35 nm. A remanence of up to 55 emu/g along with a coercivity of up to 11.6 kOe is obtained forSm2Fe15.3Zr0.2Al1.5C1.5ribbons annealed at 750 °C for 30 min. It is suggested that the high coercivity and remanence may be attributed to the Zr addition. ©1997 American Institute of Physics.