Novel icosahedral quasicrystals, in which Fe atoms possess a magnetic moment, have been found in Al70−xBxPd30−yFey compounds with 5<x<10 and 10<y<20. The compounds have ferromagnetic properties, and their Curie temperature ranges between 280 and 340 K, the saturation magnetization σs(5 K)≈7.5 emu/g. It follows from Mossbauer spectra that only a fraction of Fe atoms (12 to 15%) are magnetically ordered at 4.2 K, and the mean saturation field 〈Hhf〉=96 kOe. The isomer shift values confirm that the atomic volume of magnetic Fe sites is larger than that of nonmagnetic Fe sites. The magnetic properties of these quasicrystals can be interpreted in terms of large magnetic clusters with a size of 185 to 290 A. This size correspond to about 4×104 “unit cells,” hence the magnetic state can be described in terms of bulk parameters. The localized magnetic moment of Fe atoms is tentatively ascribed to bonding between Fe and B, similarly to that in the amorphous Fe∼50B∼50 alloy.