Abstract: The effects of iron added to NiAl intermetallic compound on the ductility and hot-rolling property are studied by means of optical and SEM metallographic examina, compression test and hot-rolling experiment. It is found that a (β+γ) dual-phase microstructure is observed, the ductility of the compound is increased remarkably and a compressive plastic strain of 36.3% is obtained, when the amount of iron is increased to18. 4 %at. During compression deformation the No. 1 alloy with (β+γ) dual-phase structure shows three stage yielding phenomenon. The coorperative deformation of the γ-phase dispersed at the grain boundaries of the β-phase and the dynamic recrystallization of the β-matrix result in a good hot-rolling property for the No. 1 alloy, and the amount of hot-rolling deformation can be as high as 88.9%.