The effect of niobium on the extent of columnar growth of grains and on the magnetic properties in Alnico alloys has been studied. Alloys containing 1 % Nb show maximum growth of columnar crystals. In columnar alloys, coercivity increases slowly with increasing niobium content up to approximately 1 %. With further increase in niobium, coercivity and remanence decrease. The maximum energy product (55 kJ m-3) has been obtained at 1 % Nb. Niobium addition has also been found to suppress the precipitation of the undesirable gamma phase