Magnetic FeCo nanoparticles were successfully synthesized in a diffusion cloud chamber setup within pulsed laser deposition (PLD) equipment. The variation of morphology and size of FeCo nanoparticles with the number of laser pulses, ambient gas pressure and temperature gradient was studied. It was observed that the morphology of the nanoparticles changes from "cloud-like" fractal clusters to particle chains; average particle size increased at higher argon gas pressure. Increasing the temperature gradient considerably reduced the agglomeration of the nanoparticles. Nanoparticles deposited using the diffusion cloud chamber are found to be crystalline. (C) 2007 Elsevier B.V. All rights reserved.