Factors governing a work softening phenomenon in Al-Fe alloys were examined. When chill cast Al-1.9%Fe alloy is incrementally rolled, hardness increases with reduction. If the alloy is heattreated to produce precipitates or hot rolled to produce dispersions of intermetallic compounds, work softening occurs at higher reductions. Work softening also occurs in the precipitated Al-0.043%Fe alloy, but in 99.9997% aluminum. Dispersions play an important role in the work softening phenomenon.