Nuclear forward scattering from ⁵⁷Fe isotope has been used to study depth-dependent magnetic properties of a thin Fe layer on MgO (0 0 1) substrate. Depth selectivity is achieved by using a wedge shaped Fe film with 3 nm thick ⁵⁷Fe layer incorporated at varying depth. Present studies provide clear evidence against the formation of any magnetic or non-magnetic iron oxide at the interface. It is found that local easy axis of magnetization exhibits a significant variation as ab function of depth, which may be related to depth dependent strain variation in the film.