The effects of Ce on the mechanical alloying behavior and the thermal stability of Al-8wt.%Fe were investigated. The steady states of Al-8wt.%Fe and Al-8wt.%Fe-4wt.%Ce powders with 1.5 wt.% stearic acid as a process control agent were reached after mechanical alloying for 1000 minuties and 1300 minuties respectively at the conditions of the impeller revolving velocity of 300 rpm and the ball to powder input ratio of 50 : 1. The hardness of Al-8wt.%Fe specimen hot extruded and isothermally aged at various temperatures for up to 1000 hours decreased rapidly at 50$0^{circ}C$ and its high temperature ultimate tensile strength began to decrease at 40$0^{circ}C$ with increasing aging time. The decrease in the hardness and ultimate tensile strength of the specimen were reduced substantially by addition of Ce. It was thought to be due to the formation of thermally stable A14Ce and All3Fe3Ce intermetallic compounds.