$FeAl_2O_4$ was formed from the starting material of $Fe_2O_3$ and $Al_2O_3$ by controlling the oxygen partial pressure using $H_2-CO_2$ gas mixture, over the temperature range of 800~120$0^{circ}C$. The formation mechanism of $FeAl_2O_4$ was found to be a second order chemical reaction, and the activation energy of formation was observed as 39.97 kcal/mole. Vaporization behavior of $FeAl_2O_4$ under $CO_2$ atmosphere was observed over the temperature range of 800~120$0^{circ}C$. $FeAl_2O_4$ was vaporized by a second order chemical reaction and the activation energy was found to be 21.8kcal/mole. Electrical conductivity of $FeAl_2O_4$ was also measured.