Nanocrystalline soft magnetic materials with high saturation polarization and low losses have a high potential in motor applications. Thus, toroidal cores were compacted by spark plasma sintering of flakes of the melt-spun Nanomet alloy Fe-Si-B-P-Cu. The thermal properties of the ribbons were analyzed by DSC to determine the crystallization temperatures. The influence of the initial powder and of the compacting parameters such as maximum temperature and dwell time on the density and the magnetic properties in DC and AC were investigated. An optimum temperature range of approximately 50 K was determined for good soft magnetic properties. An effect of the dwell time was not recognized in the observed range. By compacting flakes of different sizes, the maximum permeability can be adjusted in the range of up to 7000. The microstructure was observed by means of XRD and TEM in order to confirm the amorphous and nanocrystalline state, respectively. Using the Lorenz mode of the TEM, it was possible to calculate the magnetic domain wall width for the samples and compare the resulting calculated magnetic properties with the experiments.