In this paper, we investigated the elemental inter-diffusion in MgO TMR system, namely, between MgO barrier and free layer (CoFeB, NiFe or their combination) interface and the oxygen diffusion into the capping layers (Ta, Ru, TaN) at elevated temperatures using simple sheet film stack to simplify the results interpretation. Boron, cobalt, iron, and nickel show various diffusion tendencies into the MgO barrier after annealing the sheet film stack. Oxygen has different penetration depth into single CoFeB free layer upon annealing under N-2 + Ar protective atmosphere for different capping layers. Ru and TaN capping layer provide much better O-2 diffusion barrier, compared with Ta capping layer. This could potentially change the boron segregation tendency at free layer and capping layer interface and thus affect the interface crystallization process and lattice matching between the crystallized CoFeB free layer and the MgO(0 0 1) barrier layer. All these effects will impact the overall TMR performance. (C) 2010 Elsevier B.V. All rights reserved.