This article describes a method of thermally processing sputter deposited 2-μm-thick sendust films to produce the high permeability form of this alloy. The method described utilizes rapid thermal processing to induce the phase change in the sendust from the disordered α type to the DO3 ordered structure as confirmed by Mössbauer spectroscopy. Optimization of the treatment resulted in films with a coercivity of less than 0.4 Oe. At a treatment temperature of 500 °C, a soak time of 120 s was required to achieve optimum coercivity and at a temperature of 600 °C a time of 15 s was required. Treatments at the lower end of the temperature range with longer process times gave a greater degree of reproducibility in the coercivity results. This thermal treatment gives rise to several performance advantages of the material relative to untreated sendust, including reduced “out-of-plane” magnetic component, improved high frequency permeability, and surface passivation. In addition, the processing times associated with rapid thermal processing are considerably less than for conventional annealing, making this an attractive production solution for magnetoresistive shielding applications.