Effect of 0.1 wt pct Dy addition on microstructure and compressive behavior of NiAl-28Cr-5.8Mo-0.2 Hf eutectic alloy was investigated. The results showed that remarkable lamellar refinement can be achieved with the addition of 0.1 wt pct Dy. The Dy addition results in the decrease in Youngs modulus of alloy and the. enhancement of the compressive strength and ductility of alloy at all testing temperatures. The lamellar refinement, the increased dislocation networks located at the interfaces of NiAl/Cr(Mo) and the strengthening of cell boundary are benefical to the improvement of compressive properties of the alloy.