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The effect of Zr on the microstructure, microchemistry and coercivity of Sm(CobalCu0.08Fe0. 10Zrx)8.5 (x = 0-0.10) magnets has been systematically investigated. The presence of Zr is responsible for the formation of the lamella structure. With increasing Zr content, a cellular-like structure gradually develops while the density of the lamella phase increases. A proper Zr content (0.015-0.060 at.%) is the key to form a complete and uniform cellular structure. Microchemistry data show that the Cu content in the cell boundaries in the magnet with 0.04 at.% Zr is higher than that with 0.015 at.% Zr, although both samples have similar microstructure morphologies. Higher coercivity is obtained in samples where the domain walls (DWs) are pinned at cell boundaries. For Zr-free or higher Zr samples, DWs nucleated at grain boundaries are responsible for the reduction in coercivity. During isothermal ageing, at a fixed Zr content, the coercivity is developed with increasing ageing time. These results clearly show that Zr plays an important role in the formation of a uniform cellular structure with the right microchemistry and that a critical amount of Zr is needed for the optimum magnetic properties. [ABSTRACT FROM AUTHOR]