In this report, inductance spectroscopy (IS) has been used as a tool to investigate the thickness dependence of magnetoimpedance (MI) on electrodeposited NiFe thin films. An MI value as high as 140% has been observed under an applied magnetic field of 76 Oe at 300 kHz frequency for a film thickness of 6.8 μm. This result is in sharp contrast to earlier reports in literature showing monotonous increase in MI as a function of thickness. Maximum of MI was found at an optimum film thickness whose position varies with frequency. These reports exhibiting strong frequency dependence of MI prompted us to investigate the underlying physics using IS. The origin of MI lies in the combined effect of domain wall motion and spin rotation, which contributes to permeability. A parallel inductance and resistance (LR) circuit in series with series LR circuit model has been proposed as an equivalent electrical model to describe the property of these coated wires. The circuit elements have been linked with the phenomenon of domain wall motion and spin rotation. The experimental results obtained appear to be consistent with the proposed equivalent circuit model. © 2010 Elsevier B.V. All rights reserved.