<p>Aluminum recycling is viewed as a viable solution for environmental issues and a reduction in primary aluminum production dependency. However, the presence of iron impurities impacts the mechanical, thermal, and microstructural properties of recycled aluminum alloys. In the present work, the influence of iron on recycled aluminium alloys was thoroughly studied by addition of Fe₂O₃ on recy-cled aluminum using stir-casting. A series of aluminum alloys with varying Fe₂O₃ content was manufactured. The samples were characterized by analyzing the microstructures of the samples along with the structural composition. The results showed that the addition of Fe₂O₃ up to 1 % increased the properties of the samples of recycled aluminum alloys significantly. However, higher Fe₂O₃ content (2 % and 3 %) led to excessive FeAl₃ intermetallic precipitation, reducing ductility and fluidity due to increased viscosity. Microstructural analysis confirmed the formation of fine intermetallic dispersions at lower Fe₂O₃ levels, whereas coarse and interconnected Fe-based intermetallics appeared at higher concentrations, causing brittleness. Thermal diffusivity and thermal conductivity decreased with increasing Fe₂O₃ due to phonon scattering by intermetallics and oxide inclusions, while specific heat capacity increased, suggesting enhanced energy absorption. Corrosion testing showed that 1 % Fe₂O₃ maintained similar corrosion resistance to the base alloy, but 2 % and 3 % Fe₂O₃ led to significant corrosion rate increases due to galvanic coupling effects and disrupted passivation.</p>