Nd 12.3 Fe 81.7−x Ga x B 6.0 (x = 0-1.8) ribbons were prepared by melt spinning at 22 m/s and subsequent annealing treatment. The influences of Ga addition and annealing conditions on the magnetic properties and microstructure of the nanocrystalline alloys were systematically investigated. After being annealed at 620°C for 20 min, the J r and H ci increased from 0.85 T and 582.6 kA/m for Ga-free sample to 0.97 T and 734.6 kA/m for the x = 0.9 sample, respectively. The (BH) max for the x = 0.9 sample increased by about 40% from 96.3 to 135.5 kJ/m 3 compared with that of the Ga-free one. The significant improvement of magnetic properties originated from the refinement of grains in the samples by introducing Ga, which led to a stronger exchange coupling between the neighboring grains in comparison with that in Ga-free samples. The microstructure and magnetic properties of the samples depended strongly on annealing parameters, while the sensitivity of microstructure to annealing conditions could be significantly suppressed by the addition of Ga element.