The effects of magnetic field on the plating material in magnetically controlled electroplating is investigated for the fabrication of microcomposite wire used in magnetoimpedance sensing elements. Composite wires of microcopper core plated with a layer of ferromagnetic material, NiFe, are produced by electroplating with and without an external magnetic field longitudinal to the wire. The results show that the presence of a magnetic field during plating enhances the NiFe composition ratio along the plated surface, and enhances the alignment of crystal grains of the plated material and the smoothness of the plated surface. The imposed external magnetic field modifies the magnetic anisotropy of the plated layer from circumferential to longitudinal. (C) 2003 The Electrochemical Society.