To investigate the effect of yttrium (Y) addition on nonmetallic inclusions in FeCrAl alloys, a series of laboratory experiments and thermodynamic calculations are carried out as a function of reaction time and Y addition amount. Without Y addition, the main inclusion in FeCrAl alloys is AlN, and only a small amount of Al2O3 inclusions is evident. The higher content of Cr in FeCrAl alloy promotes the formation of Al2O3. Y addition can effectively modify Al2O3 inclusions to YAlO3 or YS inclusions. With the addition of 0.0046 wt% Y, the evolution route of inclusions in FeCrAl alloys with reaction time is Al2O3 → YAlO3‐Al2O3 → YAlO3. The variation in Al2O3 inclusions with increasing Y content is Al2O3 →YAlO3 → YS. The experimental results are consistent well with the thermodynamic calculation results.