Nanocrystalline cobalt ferrite dispersed in silica was prepared by mechanical alloying and subsequent heat-treatment. For Co-ferrite with 15 wt% silica, a high coercivity of up to 3.3 kOe and a magnetization of 68 emu/g were obtained after an optimized heat treatment (in air at 900 degrees C). Experiments were conducted to study the optimum amount of silica required to obtain optimum magnetic properties. It was found that a small amount of 4.5 wt% silica (SiO2) allows the composite to possess good magnetic properties (coercivity of .3 kOe and saturation magnetization of 72 emu/g). (C) 2000 Elsevier Science S.A. All rights reserved.