The interfacial magnetism of NiO/NiFe bilayers with different NiFe layer thicknesses, produced by DC and RF magnetron sputtering, has been studied by magnetometry and X-ray magnetic circular dichroism (XMCD). In magnetic hysteresis loops, the exchange bias field was found to be inversely proportional to the NiFe layer thickness. The fit using the Meiklejohn and Bean model gives a coupling energy at the NiO/NiFe interface of approximately 0.027mJ/m 2 . The analysis of the XMCD spectra of Fe and Ni, using the sum rules, shows a reduction of the effective spin magnetic moments in bilayers with NiFe thickness less than 4nm. This reduction is attributed to hybridization of ferromagnetic and antiferromagnetic atoms d orbitals near the interface and/or formation of antiferromagnetic alloys due to atomic diffusion at the interfaces.