Nd2Fe14B/-Fe nanocomposite permanent magnet contains the hard and soft magnetic phases, Nd2Fe14B and -Fe respectively. An exchange coupling effect exists between the two magnetic phases. The effect of alloying element Nb on its nanostructure and properties have been studied. Adding Nb to the alloy is effective to refine grains, a relatively small grain size causes a high intrinsic coercivity, remanence and therefore a high maximum energy product, (BH)max. MFM (Magnetic Force Microscope) was used to observe the magnetic micro-domain structure in the nanophase alloys. The length of the magnetic contrast shows a significant dependence on the microstructure and phase constitution, and the longer length is correspond with the larger exchange coupling effect between the soft and hard magnetic phases.