Abstract: To prepare the high-performance Fe-Si-Al soft magnetic powder cores, how to reduce the loss of Fe-Si-Al magnetic powder cores was explored. SEM, metallographic microscope and B-H analyzer were used to characterize the interior structure, morphology and magnetic properties of samples. The results indicated that the annealing following compaction is crucial to reducing the loss of Fe-Si-Al powder cores, and increasing annealing temperature can effectively reduce both hysteresis loss and eddy current loss, but over-annealing temperature can increase eddy current loss. The range of optimal annealing temperature is 660-720°C. Although adding insulating material into the powder can effectively reduce eddy current loss by increasing the resistance of powder core, it has small influence on hysteresis loss. Increasing shaping pressure can reduce the loss of the magnetic powder cores and coercive force, and the optimal shaping pressure is 1800 MPa.