Abstract: The effects of annealing process on the microstructure and properties of 00Cr13Si2Cu2Al steel were studied by optical microscope, scanning electron microscope and REMAGRAPHC-500 soft magnetic DC measuring device. The results show that the microstructure of the air-cooled process and the furnace-cooled process shows obvious differences after different annealing processes. In the annealing temperature range of 700-800 ℃, two different annealing processes of No.3 test steel can obtain a good match of mechanical properties and magnetic properties. However, under the conditions of 800 ℃×3 h annealing temperature, the strength and magnetic flux density of the furnace cooling process are better than those of the air-cooled process, with a tensile strength of 559 MPa, a yield strength of 411 MPa, a B_{2 000} of 1.29 T, a B_{5 000} of 1.43 T, and a B_{10 000} of 1.54 T.