Low carbon steel (AISI 1005) was coated by hot-dipping into a molten Al-10% Si bath at 700 °C for 18s. After hotdipping treatment, the coating layers consisted of Al, Si, FeAl 3 , τ 5 -Fe 2 Al 8 Si, and Fe 2 Al 5 . The bare steel and the aluminized steel were isothermally oxidized at 700 °C in ethanol combustion product at atmospheric pressure for 49 h. The aluminized steel shows good performance in high temperature oxidation because the formation of Al 2 O 3 layer on the coating surface. The growth of iron oxide nodules on the surface coating was accelerated by rapid outward diffusion of Fe-ions due to the presence of H 2 O-vapour generated by ethanol combustion. Thus, the oxidation rate of aluminized steel increased, resulting in a substantial mass-gain as the oxidation time increased. After longer exposure, the τ 1 -(Al,Si) 5 Fe 3 phase was completely transformed to the FeAl in the outer layer. The FeAl formed near the steel substrate was due to Fe-atoms diffusing into the Fe 2 Al 5 layer when the time and temperature increased.