Thin films of Al-1.27 wt%Y were deposited by dc magnetron sputtering. Adding yttrium to the aluminum drastically reduced the metal＇s grain size and also improve the uniformity of grain size distribution. Upon annealing at a temperature of 450 degrees C for 30 min, grain growth was insignificant, while the electrical resistance dropped from 6.05 to 2.95 mu Omega cm. The as deposited films consisted of Al4Y and alpha-Al supersaturated with yttrium. After annealing, beta-Al3Y precipitated instead of alpha-Al3Y. The Al-Y films had much higher resistance to hillock formation than did Al-1 wt %Si films.