After magnetization, the magnetic loss of FeSiAl/SrFe12O19 (SrM) soft magnetic composite is greatly reduced compared with that before magnetization, which has similar effect with FeSiAl magnetic powder core with applied external transverse magnetic field. The experimental results show that the internal bias field provided by SrM ferrite after magnetization increases the average domain size, reduces the number of domain walls and the displacement of domain walls, thereby effectively reducing the hysteresis loss. When the content of SrM ferrite is 8.1 wt.‐%, the magnetic loss is reduced by about 50 %, and the overall performance is the best.