The effect of rotating magnetic field (RMF) on the solidification of microstructures and mechanical properties of Al–2%Fe (wt.%) eutectic alloy are studied in this manuscript. SEM, EDS and TEM techniques are adopted to analyze the evolution of Al3Fe intermetallics morphology in Al–2%Fe eutectic alloy. Without RMF, the length of Al3Fe intermetallics with large plate-like and long acicular shape are about 173 μm and 189 μm, respectively. With the RMF, the Fe-rich intermetallics is refined due to collision and shear action by the Lorentz force. When the intensity of the RMF reaches to 80 V, the average length of acicular Al3Fe intermetallics is 17 μm, and the average diameter of plate-like Al3Fe is 40 μm. However, when the intensity reaches to 100 V, the Al3Fe intermetallics coarsens. With the introduction of RMF, the tensile strength and elongation of the Al–2%Fe alloy increase accordingly. When the intensity of the RMF is 80V, the maximum tensile strength and elongation are 94.24 MPa and 13.37%, respectively. The influential mechanism of RMF is also discussed in this manuscript.