Dy-x(Co40Ag60)(100-x) (x = 0, 0.7, 1.4, 2.1, 2.8, 3.5) granular films have been prepared by DC magneto controlled sputtering method. The XRD data indicated that Dy element restrained the (111) plane preferential orientation. Magnetic measurements indicated that the average size of magnetic particles increased with the increasing in Dy content. For relatively low addition Dy to CoAg granular films, Dy element can enhance GMR value as a maximum value of the GMR value similar to-18.1% at x = 0.7. (C) 2011 Elsevier B.V. All rights reserved.