Magnetoelectric (ME) thin film composites are attracting a continually increasing interest due to their unique features and potential applications in multifunctional microdevices and integrated units such as sensors, actuators and energy harvesting modules. By combining piezoelectric and highly magnetostrictive thin films, the potentialities of these materials increase. In this paper we report the fabrication of SmFe2 and PZT thin films and the investigation of their properties. First of all, a ~ 400 nm thin SmFe film was deposited on top of Si/SiO2 substrate by magnetron sputter deposition. Afterwards, a 140 nm Pt bottom electrode was sputtered on top of the SmFe film forming a bottom electrode. Spin coating was employed for the deposition of the 150 nm thin PZT layer. A PZT solution with 10 %Pb excess was utilized for this fabrication step. Finally, circular Pt top electrodes were sputtered as top electrodes. This paper focuses on the microstructure of the individual films characterized by X-Ray diffractometer (XRD) and scanning electron microscopy (SEM). A piezoelectric evaluation system, aixPES, with TF2000E analyzer component was used for the electric hysteresis measurements of PZT thin films and a vibrating sample magnetometer (VSM) was employed for the magnetic characterization of the SmFe. The developed thin films and the fabricated double layer SmFe-PZT exhibit both good ferromagnetic and piezoelectric responses which predict a promising ME composite structure. The quantitative chemical composition of the samples was confirmed by energy dispersive spectroscopy (EDX). © (2013) COPYRIGHT Society of Photo-Optical Instrumentation Engineers (SPIE). Downloading of the abstract is permitted for personal use only.