Strongly non uniform Fe depth distributions have been observed in AI(0.13 at% Fe) thin films deposited at temperatures of 350ºC and above. The concentration of Fe is uniform in depth at a deposition temperature of 300ºC but is increasingly enhanced toward the substrate interface at 450ºC. Subsequent annealing produces only a slight redistribution of Fe. The Fe is primarily present as precipitates smaller than 100 nm. A model of grain boundary diffusion of Fe and precipitate formation and grain growth is proposed to explain the observed behavior.