Due to the unique amorphous/nanocrystal dual-phase structure, Fe-based nanocrystaliine alloys have excellent soft magnetic properties, which are profound progress in the development of soft magnetic materials. In this paper, the development and research history of the Fe-based nanocrystalline soft magnetic alloys are reviewed. The development and properties of the typical Fe-based nanocrystallne alloys are introduced，and the nanocrystallization mechanism, the soft magnetic mechanism and the corrosion resistant properties of Fe-based nanocrystalline alloys are depicted. At the end, the application and prospect of the Fe-based nanocrystalline alloys in the power and electronic information are proposed. The major objective of this paper is to provide some helps for the material researchers in designing and developing of new Fe-based nanocrystalline alloy and other advanced functional materials.