The effect of substituting Al for Si in Co36Fe36Si4-xAlxB20Nb4, (X=0, 0.5, 1.0, 1.5, 2.0 at%) alloys prepared in the form of melt-spun ribbons have been investigated. All the alloys were amorphous in their as-cast state. The onset of crystallization as observed using differential scanning calorimetry (DSC) was found to rise at low Al content up to X=1 at% beyond which there was a decreasing trend. The alloys also exhibited glass transition at 'Tg'. Microstructural studies of optimally annealed samples indicated finer dispersions of nanoparticles in amorphous matrix which were identified as bcc-(FeCo)Si and bcc-(FeCo)SiAl nanophases by X-ray diffraction technique. Alloy with optimum content of Al around X=1 at% exhibited stability in coercivity at elevated temperatures. Though Al addition is known to lower magnetostriction, such consistency in coercivity may also be attributed towards lowering in the nanoparticle size compared to X=0 alloy. In the nanostructured state, the alloy containing optimum Al content (X=1) exhibited further enhancement in ferromagnetic ordering or the Curie temperature by 100 K compared to alloy without Al. Such addition also attributed to better frequency response of coercivity and low core losses. © 2009 Elsevier B.V. All rights reserved.