Cyclic nanohardness tests of Al65Cu23Fe12 quasicrystal reveals a different mechanism of plastic deformation as compared with a regular metal. For a polycrystalline metal, the indent depth increases monotonically with load, while for a quasicrystal, it increases stepwise. Probably, the step formation in the Al-Cu-Fe quasicrystal loading curve is due to the structural transformation in the indent. It is known that the quasicrystal structure destroys at high pressure and transforms into a regular crystalline structure. Therefore, it is possible to attribute the pressure drop in the indent to the transformation of the quasicrystalline structure into the crystalline one and extrusion of the plastic polycrystalline metallic phase out from indent. The observation of thin layers extruded out of the indent in Al-Cu-Fe quasicrystal supports this assumption.