The effects of magnetic heat treatment on magnetostriction properties of Tb0.3Dy0.7Fe1.95 alloy were investigated.The directionally solidified alloy was heated to various temperatures near Curie temperature TC in vacuum, kept for a certain time under the application of magnetic field and then cooled to room temperature.The magnetostriction coefficient was measured by a resistance strain gage.The crystal structure was analyzed by X-ray diffraction (XRD).The experimental results show that the magnetostriction coefficient obviously increases and the grains orientations along the axis changed somewhat as the field of 1 T vertical to axis of the rod-shaped specimen is applied for 5 min at the heating temperature slightly lower than TC.