Tailoring of magnetic domains of Tb-Fe-Co thin films with rapid thermal processing has been reported in this paper. While the as-deposited films show elongated, inter-connected domains with high out-of-plane magnetic phase contrast, the rapid thermal processed films at 550 °C with different time intervals display deterioration of magnetic contrast. A longitudinal extension of domains has been observed with the processing time of 5 min. With subsequent increase in processing time, the domain patterns exhibit considerable decrease in magnetic phase difference combined with strong intermixing between two oppositely magnetized areas. The out-of-plane magnetic contrast is seen to be very weak for the Tb-Fe-Co film processed for 30 min. The domain morphology and the contrast variation have been modeled with micromagnetic simulations, considering the in-plane (along xz plane) tilt of anisotropy axis. The ground state energy profile and the variation in magnetic properties indicate the threshold tilt angle to be around 30° wherein the in-plane and out-of-plane squareness ratio and coercivities are comparable and hence the system shows a spin re-orientation behavior at higher tilt angles. © 2017