The crystal structure and atomic arrangement of Al-2 at.% Nd thin films were investigated by a transmission electron microscopy (TEM) study. As a result, we have revealed that Nd atoms exist in Al matrix as solid solutions in the state of as-deposited and annealed at low temperature, while the intermetallic compounds with the composition of Al4Nd are precipitated as the annealing temperature increased above 300 degrees C. The precipitated Al4Nd has a tetragonal structure with nine cyclic layers, and the atomic arrangement was identified by the fast Fourier transform (FFT) and Fourier filtered images as well as the experimental high-resolution transmission electron microscopy (HRTEM) images. Consequently, Nd atoms, forms of solid solutions or precipitates, effectively suppress the grain growth of Al. (C) 2008 Elsevier B. V. All rights reserved.