Fe-Si electric steel is the most widely used soft magnetic material in electric machines and transformers. Increasing the silicon content from 3.2 wt.% to 6.5 wt.% brings about large improvement in the magnetic and electrical properties. However, 6.5 wt.% silicon steel is inherited with brittleness owing to the formation of B2 and D03 ordered phase. To obtain ductility in Fe-6.5wt.% silicon steel, the ordered phase has to be bypassed with methods like rapid cooling. In present paper, the effect of cooling rate on magnetic and mechanical properties of Fe-6.5wt.% silicon steel is studied by tuning the wheel speed during melt spinning process. The cooling rate significantly alters the ordering and microstructure, and thus the mechanical and magnetic properties. X-ray diffraction data shows that D03 ordering was fully suppressed at high wheel speeds but starts to nucleate at 10m/s and below, which correlates with the increase of Young’s modulus towards low wheel speeds as tested by nanoindentation. The grain sizes of the ribbons on the wheel side decrease with increasing wheel speeds, ranging from ∼100 μm at 1m/s to ∼8 μm at 30m/s, which lead to changes in coercivity.