We investigate the effect of phosphorous content on the microstructure and magnetic properties of Fe_83.2Si_5.33-0.33xB_10.67-0.67xP_xCu_0.8 (x = 1–4 at.%) nanocrystalline soft magnetic alloys. The simultaneous addition of Cu and P to nanocrystalline alloys reportedly decreases the nanocrystalline size significantly, to 10–20 nm. In the P-containing nanocrystalline alloy, P atoms are distributed in an amorphous residual matrix, which suppresses grain growth, increases permeability, and decreases coercivity. In this study, nanocrystalline ribbons with a composition of Fe_83.2Si_5.33-0.33xB_{10.67- 0.67x}P_xCu_0.8 (x = 1–4 at.%) are fabricated by rapid quenching melt-spinning and thermal annealing. It is demonstrated that the addition of a small amount of P to the alloy improves the glass-forming ability and increases the resistance to undesirable Fex(B,P) crystallization. Among the alloys investigated in this work, an Fe_83.2Si₅B₁₀P₁Cu_0.8 nanocrystalline ribbon annealed at 460°C exhibits excellent soft-magnetic properties including low coercivity, low core loss, and high saturation magnetization. The uniform nanocrystallization of the Fe_83.2Si₅B₁₀P₁Cu_0.8 alloy is confirmed by high-resolution transmission electron microscopy analysis.