Laser surface alloying of iron substrate with copper under different processing conditions has been systematically studied. The microstructural analysis reveals a predominantly cellular microstructure with copper wetting the cell boundaries. Globular distribution of copper at higher laser scanning speeds can be observed occasionally indicating the system under these conditions to be near the metastable miscibility gap. The concentration of copper in the pool is related to the laser scanning speed. In all cases a banded morphology indicating unsteady growth towards the bottom of the alloyed zone is observed. The hardness of the alloyed zone is significantly higher and is attributed to work hardening due to differential thermal contraction of the two phases in the alloyed zone.