Microstructure and mechanical properties were examined on rapidly solidified Al-8wt%Fe alloy. High temperature strength test was also undertaken, and it is shown that the refinement in microstructure resulting from extremely rapid cooling rates gives rise to improved high temperature strength, but the elongation to fracture of this material decreases with increasing temperature, particularly in the temperature range up to 30$0^{circ}C$. Specimens heat-treated for 100 hrs were analyzed with TEM micrographs to understand the thermal stability of this material.