$Cr_2AlC$ compounds were synthesized by hot pressing, and oxidized between 900 and $1200^{circ}C$ in air for up to 50 hours. They oxidized to a thin $Al_2O_3$ layer containing a small amount of $Cr_2O_3$with the liberation of carbon as CO or $CO_2$ gases. The consumption of Al to form the $Al_2O_3$ layer led to the depletion of Al and enrichment of Cr just below the $Al_2O_3$ layer, resulting in the formation of an underlying $Cr_7C_3$ layer. As the oxidation temperature and time increased, the $Cr_7C_3$ oxide layer and the underlying $Cr_7C_3$ layer thickened. The oxidation resistance of $Cr_2AlC$ was generally good due to the formation of the $Al_2O_3$ barrier layer.