The effect of niobium on the microstructure and mechanical properties of high carbon Fe-10.5 wt.% Al alloys has been investigated. The alloys were prepared by a combination of air induction melting with flux cover (AIMFC) and electroslag remelting (ESR). The ESR ingots were hot-forged and hot-rolled at 1373 K. The hot-rolled alloys were characterized. The ternary Fe-10.5 wt.% Al-(0.7 and 0.9 wt.%) C alloys exhibited two-phase microstructure of large volume fraction of Fe 3 AlC 0.5 precipitates in Fe-Al (␣) matrix. Addition of niobium to Fe-10.5 wt.% Al-(0.7 and 0.9 wt.%) C alloys resulted in the precipitation of small volume fraction of niobium carbide precipitates in Fe-Al (␣) matrix in addition to large volume fraction of Fe 3 AlC 0.5 precipitates. The addition of up to 2 wt.% Nb to high carbon Fe-10.5 wt.% Al alloys has no effect on the yield strength at both room temperature and 873 K as well as creep properties at 140 MPa and 873 K, but it has reduced the room temperature tensile elongation at higher (2 wt.%) concentration. In the present work, it has also been observed that alloys containing high (0.9 wt.%) carbon, exhibited higher yield strength at room temperature as compared to alloys containing low (0.7 wt.%) carbon. The increase in strength with small increase in carbon may be attributed to the significant increase in volume fraction of Fe 3 AlC 0.5 precipitates.