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Nanostructured Co/Ag composite films were prepared by magnetron sputtering using a single target. The average crystallite sizes of Co and Ag in the films depend on the deposition conditions. As the substrate temperature increases from 100 °C to 600 °C, the average Ag crystallite size increases from 39 to 452 Å, and the average Co crystallite size increases from <30 to 297 Å in the film with 39 vol. % of Co. The films with 39 vol. % of Co and prepared at 400 °C substrate temperature showed a maximum magnetic coercivity of 565 Oe at 6 K. We have studied the correlation between the structure and magnetic properties of these films.