In the present work, we performed the ultra-rapid annealing (URA) process for amorphous Fe78Ni8B14 melt-spun ribbons in order to obtain fine excellent microstructure assuring the best soft magnetic properties. Several microscopic methods mainly based on transmission electron microscopy (TEM) and Lorentz TEM (L-TEM) were applied for detailed studies of the microstructure and magnetic domains structure. The investigation revealed that the optimized parameters of the URA process (500°C/0.5-5 s) lead to outstanding soft magnetic properties. A mixture containing close to 50% amorphous phase and 50% α-Fe nanocrystals of size up to 30 nm has been already obtained after annealing for 3 s. These annealing conditions appear to be the most suitable in terms of microstructure providing the best magnetic properties.