This SBIR Phase I proposal is aimed to develop advanced soft magnetic nanocomposite materials with low loss, high flux density, and capability to operate at high frequency ranges (100kHz-10MHz). With Spectrum Magnetics & apos; proprietary technique, we will develop magnetic flake materials with thickness in the nanometer scale, which effectively reduces the eddy current loss and eliminates undesired demagnetization factor. Consolidation of laminated magnetic nano-entities leads to novel cores, which is a nano-scale version of conventional laminated soft FeSi (silicon steel) cores. Our process greatly simplifies the manufacture procedures and reduces the cost.