Two grades of Permalloy strips, Fe-45Ni(PB) and Fe-78Ni-4Mo-5Cu(PC) were fabricated by powder rolling process from elemental powder mixtures. The roll compacted green strips were sintered, homogenized, cold rolled with or without an intermediate annealing and finally heat treated to measure magnetic properties. For a given thickness reduction, rolling with an intermediate annealing was found more effective to achieve a full densification with no visible micropores and also to obtain better magnetic properties. Increasing the final rolling reduction also produced a marked improvement of the magnetic properties whereas the cooling rate during the final heat treatment has little effect in both grades. Addition of a small amount, 0.4% Mn slightly degraded the properties. As an overall, The PM strips produced via powder rolling yielded the similar soft magnetic properties to the corresponding commercial grades produced via wrought processing.