The magnetostrictive effect in micro-dotted FeCo film coated surface acoustic wave (SAW) devices was demonstrated by solving coupling equations using the specific coupling of modes parameters extracted by FEM analysis. Dotted-pattern on FeCo thin-film proposed in this work contributes well to suppression in hysteresis effect by fully releasing the internal coericivity of the magnetistrictive FeCo thin-film. The theoretical demonstration was confirmed well by characterizing the constructed SAW magnetic devices with FeCo dots depositing along the SAW propagation path. Significantly improvements on suppression of hysteresis phenomenon were observed by characterizing the prepared FeCo dots coated SAW magnetic devices, higher magneto-sensitivity of 21.17 kHz mT−1, and lower hysteresis error of 0.82% were achieved successfully.