The effect of rare earths on the morphology and microstructure of eutectic carbides in M2 high speed steel was studied. The results showed that rare earths promoted the formation of fishbone-like M6C eutectic carbides, compared to plate-like M2C carbides in ingots without modification. The formation of M6C was expected to be caused by rare earth inclusions which acted effectively as the substrate for nucleation of M6C carbides during solidification. M2C and M6C eutectic carbides exhibited different stability during heating. M2C eutectic carbides were much less stable than M6C carbides, and decomposed at high temperatures, favoring the spheroidization and refinement of carbides in high speed steels. The effect of rare earths on the morphology and microstructure of eutectic carbides in M2 high speed steel was studied. The results showed that rare earths promoted the formation of fishbone-like M6C eutectic carbides, compared to plate-like M2C carbides in ingots without modification. M2C eutectic carbides were much less stable than M6C carbides, and decomposed at high temperatures, favoring the spheroidization and refinement of carbides in high speed steels.