In　this　paper,　both　technologies　of　ion　beam　sputtering　deposition　(IBSD)　and　vacuum　casting　alloy　target　were　used　to　fabricate　Sm-Fe　giant　magnetostrictive　thin　films　(Sm-Fe　GMFs).　The　films　were　annealed　at　different　temperatures　under　vacuum　condition.　The　results　showed　that　under　the　fixed　fabrication　procedure　of　IBSD,　compact　amorphous　Sm-Fe　GMFs　with　smooth　surface　and　high　interfacial　adhesion　had　been　deposited.　With　post-annealing　temperature　rising,　the　microstructure　of　the　films　had　been　changed　as　following　order:　amorphous　amorphous　-＞　microcrystalline+nano-polycrystalline　(crystallization　temperature　was　about　400　degrees　C),　and　magnetostriction　of　films　had　changed　as　well.　It　was　note　that　after　properly　annealing,　the　magnetostriction　of　Sm-Fe　GMFs　could　be　drastically　improved　(lambda　could　reach　about　-350x10(-6)　at　an　applied　magnetic　field　of　50KA.m(-1)).