Abstract: The preparation of Fe-N compound has been studied with laser nitridation method,based on it,local laser nitridation on the oriented silicon steel has been achieved.The samples have been analysed with XPS method.The results show that Fe-N compounds can be formed under some parameters(laser power,scan speed etc.).Fe-N compounds can be achieved on the surface of grain oriented silicon steel by controlling scan speed,scan space and N2 velocity.The observations with domain observation equipment show that domain of the grain oriented silicon steel has been refined after the nitridation treatment,therefore,the total loss of grain oriented silicon steel can be decreased.