Abstract: Series of Fe/Ag cluster embedded film were prepared on farmvar foil or single crystal Si（111） by Evaporation Gas Aggregation （EGA） co-deposition in this paper. TEM analysis shows that fcc Ag and bcc Fe coexist in as-deposited samples, Fe clusters being 8nm in average diameter are well encapsulated in Ag matrix. More detailed analysis shows that, compared with that of bulk α-Fe, the lattice constant of Fe clusters decreases in different degree depending on clusters size,the shrinking amount is 5.7% for Fe cluster 8nm in size, magnetic measurement indicates that samples show ferromagnetic behavior and their saturation magnetization increase with decreasing of testing temperature. At lower temperature, the coercivity is much higher than that of bulk α-Fe, and it decreases with increasing of testing temperature.