We prepared a Ni-ferrite encapsulated Mo-permalloy powder through simple electroless plating and heat treatment. It was observed that Ni-ferrite particles formed in a spherical form on each Mo-permalloy grain. The microstructure and the magnetic characteristics of the encapsulated powders depended strongly on oxidation time in the heat-treatment. When the powder was oxidized for 60 min, a dense Ni-ferrite layer covered the Mo-permalloy grain, which in turn exhibited high saturation magnetization of 85.8 emu/g. The magnetic core prepared additionally with the encapsulated powder exhibited a resonant frequency of 12 kHz.