Soft magnetic Ni−Fe/Ta2O5 nanocomposites were synthesized by electro‐codeposition on a copper substrate from an ethylene glycol bath. Formation of the composites, tantalum oxide particle content and structure evolution were investigated using X‐ray diffractometer (XRD), transmission electron microscope (TEM), scanning electron microscope (SEM) and energy dispersive X‐ray analyzer (EDAX). Maximum particle content of the deposits was up to 5.7 wt% and clusters of Ta2O5 particles were found on the coating surface. This appears beneficial for improving the corrosion resistance of the coatings. With increasing current density, relative texture coefficient of the coatings shifted from (111) to (200) and followed (220) crystallographic plane. Although crystallite size was recorded approximately 15 nm in the entire current density range studied, remarkable enhancement in the microhardness of the Ni−Fe/Ta2O5 nanocomposite coatings was noticed (up to 870 HV) owing to reinforcement of ceramic particles.