Rapidly quenched short fibers of Fe–8Al and Fe– 8Al–XZr (X = 0.1, 0.2, 0.4, and 1) alloys were produced by the Pendant Drop Melt Extraction Process, (PDME) to explore the feasibility of producing intermediate temperature, oxidation resistant iron base alloys. The fibers had a diameter of 20 to 50 μm and ranged in length from 2–5 mm. The cooling rate was insufficient to retain zirconium in solution in the Zr-containing alloys, resulting in precipitates of the type Fex(Zr,Al) having differing compositions at the grain boundaries and within the matrix. No precipitates were observed in the FeAl alloys. The precipitates were uniform in distribution and size (nominally 0.1 to 0.3 μm diameter). Grain boundary precipitation and precipitate size both decreased with decreasing Zr contents.