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PrCo/Co multilayer thin films have been prepared by sputtering. After heat treatment, high coercivity is developed and the remanence is enhanced for the insertion of the CO layers and the exchange coupling between the hard phase and the soft phase, which leads to high energy products of the composite magnets. The nanostructure of the films has been studied by TEM. It is found that the grain size of the films with high energy products is in the range from 10 to 25 nanometers.