Clean surfaces of n-type CdSe single crystals have been prepared by cleavage along the c-axis under ultrahigh vacuum. They were exposed to increasing doses of Fe vapor and received from 10 −1 to 10 2 monolayer (ML) deposits. At each step they are studied by low-energy electron diffraction (LEED), Auger electron spectroscopy (AES) and photoemission yield spectroscopy (PYS). The results show that Fe dissociates the CdSe top layers. It forms an Fe Se compound on top of a Cd layer up to 2.5 ML deposit beyond which no more Se is extracted from the CdSe substrate. At that stage further Fe dilutes the Se atoms in the top alloyed layer to which the d electrons of Fe bring already a metallic character after 1 ML deposition.