Sodium molybdate (Na₂MoO₄) as a grain refiner was used to refine the microstructure of Al-0.7Fe alloy. Al-Fe samples with the addition of 0.1, 0.2, 0.3, 0.4 and 0.5 wt.% sodium molybdate were fabricated by casting in sand molds at 750 ͦC. The microstructures of the as-cast samples were investigated by scanning electron microscopy (SEM) and the present phases were revealed by X-ray diffraction (XRD). The effect of sodium molybdate on the microstructure was examined by measuring the average grain sizes of the alloys, determining the widths of intermetallic compounds and carrying out hardness and tensile tests. The results showed that the addition of sodium molybdate modified the microstructure of Al-Fe alloy by reducing the average grain sizes. Also, it was found that the optimum amount of sodium molybdate to add to Al-0.7Fe alloy melt was 0.3 wt.% in this study.