The purpose of this study is the fabrication of nano-sized Fe-Co alloy powders with soft magnetic properties by the slurry mixing and hydrogen reduction (SMHR) process. FeCl_20 and CoCl_2 powders with 99.9% purities were used for synthesizing nanostructured Fe-Co alloy powder. Nano-sized Fe-Co alloy powders were successfully fabricated using SMHR, which was performed at 500°C for 1 h in H_2 atmosphere. The fabricated Fe-Co alloy powders showed alpha' phase (ordered body centered cubic) with the average particle size of 45 nm. The SMHR powder exhibited low coercivity force of 32.5 Oe and saturation magnetization of 214 emu/g.