It normally believed that the limitation of the practical bubble diameter will be around 3μm by means of conventional photolithography. In this paper, a new design of the overlay for bubble propagation is introduced for smaller diameter bubble propagation. T‐bars are divided into two groups of x and y directed bars, each of which is arranged in different layers separated by SiO2. The spacing of the I and the top bar of the T can be decreased down to the thickness of SiO2 interlayer, becuase they are deposited in different layers. By forming 1‐μm wide bars and 1‐μm spacings between adjacent bars, which is the limit of present photolithographic technology, it is possible to propagate 1.5‐μm bubbles. From the 1.5‐μm bubble propagation experiment, bias field margin was about 18 Oe at 25 Oe, 2‐Hz rotational field. An all‐permalloy transfer gate was demonstrated to have 12 Oe bias field margin of 5‐mA control current.