The influence of iron on the formation of Al8Mn5 particles during twin roll casting of AZ31 magnesium alloy and the alloy microstructure has been investigated. Flower-shaped Al8Mn5 particles with sizes of 50–500nm were observed at the grain centres and the grain boundaries. Additionally, Fe-particles with faceted morphologies and dimensions of less than 100nm were observed at the centres of the Al8Mn5 particles, suggesting that the α-Fe particles acted as effective nucleation sites for the Al8Mn5 particles.