Magnetostrictive TbxHo0.8−xPr0.2Fe1.8Mn0.1 (0 ⩽ x ⩽ 0.20) alloys are prepared by arc-melting and subsequent annealing. The dopant of Pr/Mn introduced into RFe2 compounds effectively stabilizes the forming of single C15 Laves phase at ambient pressure. The easy magnetization direction (EMD) varies when Tb content increases, which is accompanied by a crystalstructural transition. EMD lies along ‹1 0 0› axis for x ⩽ 0.05, rotating to ‹1 1 1› axis for x ⩽ 0.12, with a tetragonal symmetry changing to a rhombohedral one. Magnetocrystalline-anisotropy compensation is obtained with the optimized composition of x = 0.12, shifting to the Tb-poor side in comparison to Pr/Mn-free counterpart. An enhanced effect on magnetoelastic properties is achieved in Tb0.12Ho0.68Pr0.2Fe1.8Mn0.1, which simultaneously possesses a low anisotropy and high magnetostriction performance, i.e. λs ~ 420 ppm, λ111 ~ 970 ppm, and a large low-field λa ~ 390 ppm/2 kOe, being 30 % higher than that of Pr/Mn-free compound. Combining low-cost light rare earth Pr with the lower Tb content, Tb0.12Ho0.68Pr0.2Fe1.8Mn0.1may make it promising solution in magnetostrictive applications.