In this work we report on the structural, mechanical and magnetic properties of mechanically alloyed Fe40Co60 powders. Alloying formation, grain size, lattice parameter and internal strain were investigated using X-Ray Diffraction (XRD) measurements. The morphological aspect of the nanostructured powders was analysed by means of the Scanning Electron Microscopy (SEM). Compacted pastilles with circular shape have been under Vickers test of micro Hardness and magnetic measurements of Hysterisis loops. Discussed results according to milling time show that after 60 h milling the grain refinement is about 15.59 nm with internal strain of around 0.5809 %. The micro hardness increases with the decrease of the grain size and the hysterisis loop at 60 h milling is enhanced in term of decreased coercivity.