Iron-polyvinylalcohol (Fe-PVA) complexes have been pyrolysed at the temperatures up to 1000 K, and the iron-carbon composites formed have been characterized. The yield of carbon was much higher for the complexes than for PVA alone. The degree of carbon graphitization and the chemical form of iron species were dependent on the pyrolysis temperature. About 30 wt% fine particles of Fe3O4 or alpha-Fe were dispersed in the matrix of amorphous carbon at 800 or 900 K, respectively. At 1000 K, alpha-Fe was partly transformed to Fe3C, and the agglomeration of alpha-Fe was not so significant. At this temperature the carbon was graphitized, which resulted in a lowering of the surface area of the composite. It is suggested that the graphitization proceeds through the mechanism involving the formation and subsequent decomposition of Fe3C. Thus, the use of Fe-PVA complexes achieves a high yield of carbon and a high dispersion of a large amount of iron species throughout the carbon matrix.