In this paper, the influences of annealing temperature on TbFe magnetostrictive film magnetic and magnetostrictive characteristics were discussed. TbFe films were prepared by RF magnetron sputtering. XRD patterns indicate that polycrystalline films consisting mainly of a-Fe and TbFe2 Laves phase could be obtained through rapid cycle annealing process (RCAP) at higher annealing temperature. Grain sizes could be controlled through varying annealing temperature. From film hysteresis loops measured by VSM, it has been found that the annealing treatment can improve TbFe film in-plane magnetization at 1600 kA.m-1 external field, and decrease in-plane coercivity. Magnetostriction of annealed TbFe films measured by optical cantilever deflectometer is better than as-deposited films at 40 kA.m-1 external magnetic field.