The interface of Ni-NiO thin films was developed by thermal evaporation of nickel and subsequent annealing in oxygen atmosphere at 400 degrees C at varying duration of time. The evolution of layer thicknesses with annealing time was studied using rutherford backscattering spectrometry. The structural characterization showed grain growth stagnation for Ni at higher duration of annealing. The Ni phase had more crystallinity compared to the NiO phase. The surface was studied using atomic force microscope. The magnetic domains were also imaged. Magnetic stripe domain patterns were observed for selected films. Variation in saturation magnetisation and coercivity with annealing time was observed. The observation of weak exchange bias shows the importance of antiferromagnetic phase in determining the exchange bias properties. Thermal annealing of Ni films caused a competition among oxidation and grain growth.