Effect of ion nitriding modification on surface hardness, corrosion resistance and magnetostriction of (Tb0.3Dy0.7)Fe1.95 alloy was investigated. Results demonstrated that a 100-200 nm thick nitrided layer was formed on the sample surface by ion nitriding treatment, which improved obviously surface hardness, wear, and corrosion resistance properties of (Tb0.3Dy0.7)Fe1.95 alloys. The surface hardness was increased from HV587 to HV622 after ion nitriding at 650 K for 6 h. Furthermore, ion nitriding treatment had almost no influence on mag-netostrictive performance as the nitrided layer was quite thin and the treatment temperature was not too high. The results might provide us a new approach for surface modification of (Tb0.3Dy0.7)Fe1.95 alloy.