The effects of the rapid solidification on the deformation and fracture of Al-8Fe alloys, from TEM fracture specimens, have been studied. The most general conclusion which can be drawn in this study is clearly in agreement with a plastic deformation mechanism. Crack propagation occurs by localized plastic rupture mechanisms which result from enhanced slip along {111}(gamma) planes. Crack propagation occurs within the deformed zone either by the nucleation, growth and coalescence of holes ahead of the crack-tip, or through the emission of dislocation from the crack-tip. The resulting fracture is along the active {111}(gamma) slip planes. The principal effect of secondary phases (Al13Fe4) on the fracture propagation in Al-8Fe alloys was that the secondary phases increased the stress level at which plastic deformation occurs at the crack-tip and increased the stress level at which the crack propagates. This work clearly shows that in order to obtain coarse intermetallic precipitates in the specimens after ageing heat treatments the crack propagation and deformation processes occur at lower stresses compared to as-received rapidly solidified samples.