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It is well known that the Cr underlayer plays a critical role in generating large in-plane coercivity in Co-based magnetic thin films. In this paper we report in detail the Co-Sm (1̅100)//Cr (1̅21̅)[ 1̅01] epitaxy revealed by high resolution electron microscopy. The lattice mismatch between Co-Sm (1̅100) and Cr (1̅21̅) is less than 2%, suggesting an energetically favorable configuration. The high anisotropy observed in Co-Sm films is discussed by this epitaxial relation.