In 2 O 3 nanoparticles (<100 nm) up to 5 wt% are incorporated into Ni-Fe alloy matrix by electrodeposition which enhance both corrosion resistance and hardness. Plating parameters like current density, concentration of metal ions and In 2 O 3 particles, agitation and the temperature of the bath were optimized to achieve acceptable quality of the coatings. Effect of current density on the development of Ni-Fe/In 2 O 3 nanocomposites and their physical properties was mainly studied. Coatings thus obtained were characterized by SEM-EDAX, XRD, TEM and AFM and surface morphology, crystal structure, microhardness, corrosion resistance, magnetic behavior and electrical resistivity of the nanocomposites were studied. The incorporation of conducting In 2 O 3 particles in a alloy matrix resulted in a higher electrical conductivity than the matrix. X-ray diffraction results showed that the incorporation of In 2 O 3 particles does not affect the Ni-Fe alloy fcc structure but alters the texture of the deposits favoring (111) crystallographic orientation and is independent of the applied current density for deposition. The crystallite size of the nanocomposites is found in the range of 5-13 nm with almost negligible strain.Metal matrix nanocomposite films have drawn great interest due to their unique properties e.g. mechanical, electrical, magnetic and corrosion resistant properties compared with those of conventional materials. 1-4 Out of several techniques for fabrication of alloys and composites, electrodeposition method has been widely used during the past several decades due to its more technologically feasible and economically superior nature and it is emerging as method of choice for the deposition of nanocomposite films in past few years. 2,3,5,6 The electrodeposition of metals is greener route of thin film growing and may also be of interest for fundamental studies of their nanometric nature. The reinforced particles can significantly improve the properties of the coatings depending on the nature, size, concentration and distribution of particles. 5,7 Electroplating parameters like current density, concentration of electrolyte and ceramic particle, temperature, stirring rate and duration of electrolysis also influence the properties of nanocomposites. 8,9 Superior mechanical properties of nickel-iron alloy have been reported by many investigators 10,11 which are strongly dependent on the iron content of the deposits. Permalloy (80 wt% Ni, 20 wt% Fe) has promising properties for practical applications e.g. their interesting magnetic and mechanical properties. Nanocrystalline Ni-Fe magnetic thin films gradually replaced the traditional micro-crystalline magnetic material due to their significant soft magnetic properties. In the past 4,5,12,13 some effort has been made to study the nanocrystalline nickel-iron alloy matrix composites with various type of ceramic particles owing to their excellent physical properties, however corrosion behavior, magnetic and electrical properties of such coatings have not been studied in d...