Specular spin valves (SSVs) having the spin filter layer (SFL) in contact with the ultrathin free layer of composition Ta 3 /NiFe 2 /IrMn 7 /CoFe 1 /(NOL1)/CoFe 2 /Cu 1.8 /CoFe(t F )/Cu(t SF )/(NOL2)/Ta 3.5 (in nm) deposited by magnetron sputtering were studied. For these antiferromagnetic Ir 22 Mn 78 -pinned spin filter specular spin valve (SFSSV) films, an optimal magnetoresistance (MR) ratio of 11.9% was obtained when both the free layer thickness (t F ) and the SFL thickness (t SF ) were 1.5 nm, and a MR ratio higher than 11% was maintained even when t F was reduced to 1.0 nm. This was due to an increase of specular electrons by the nano-oxide layer (NOL) and of current shunting through the SFL. Moreover, the interlayer coupling field (H int ) between the free layer and pinned layer could be explained by considering the RKKY and magnetostatic coupling. The coercivity of the free layer (H cf ) was significantly reduced as compared to traditional spin valves (TSV), and remained as low as 4 Oe when t F varied from 1 to 4 nm. It was found that the SFL made it possible to reduce the free layer thickness and enhance the MR ratio without degrading the soft magnetic property of the free layer.