Structural and magnetic properties of Fe-25Cr-12Co-1Si alloy thermo-magnetically treated under different external magnetic field conditions were investigated. Orientation and morphology of the ferromagnetic α1 phase embedded in α2 phase matrix before and after step ageing are characterized by transmission electron microscope(TEM). The results show that the ellipsoidal particles of ferromagnetic α1 phase are aligned along the direction of external magnetic field during isothermal magnetic ageing. Approximately 28% of the total coercivity can be attributed to the shape anisotropy of α1 phase particles induced by external magnetic field for Fe-25Cr-12Co-1Si alloy thermo-magnetically treated with a parallel magnetic field.