Abstract: There are coarse acicular or flake primary iron-rich phases in the cast Al-Fe alloy obtained under ordinary solidification conditions, which seriously split the matrix, cause stress concentration and deteriorate the alloy performance. In this paper, Al-6Fe alloy was microalloyed with rare earth Y, combined with rapid solidification technology and assisted by hot extrusion technology, to obtain a finer and more uniform microstructure than that under conventional solidification conditions, so as to solve the problem that the coarse needle-like iron-rich phase in Al-Fe alloy splits the matrix. The results show that the growth trend of primary iron-rich phase is inhibited by rare earth element Y, and the coarse acicular iron-rich phase is refined into diamond and short rod shape, which reduces the second phase size of the alloy to a certain extent. The combination of rare earth Y microalloying and rapid solidification technology enables the formation of fine and dispersed ternary Al-Fe-Y intermetallic compound in Al-Fe alloy, which greatly refines the second phase and impromtes the hardness and yield strength of the alloy while improving the microstructure.