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Magnetic property of single crystalline iron-MgO composite films was measured with a SQUID magnetometer. The thermo-magnetic (M-T) curves showed splitting of the magnetization in low temperature, depending on zero-field cooling and field cooling cases. The magnetization (M-H) curves at 5 K after the zero-field cooling showed hysteresis with larger coercive force than that of bulky iron. Systematic study of the relationship between the structure of the composite films and the magnetic property showed that nm-sized iron crystallites embedded epitaxially in MgO films play a main role to the property. [ABSTRACT FROM AUTHOR]