The effect of the modification of ASD-4 micron-sized aluminum powder by iron oxide on its oxidation in air was investigated. The metal particle surface was modified by coating with a gel based on Fe(OH)(HCOO)2 and ethylene glycol monomethyl ether, CH3OC2H4OH, with subsequent heat treatment in air. It was found that the presence of iron oxide generally had a positive effect on the oxidation dynamics of ASD-4 powder under heating in air. The oxidation rate of modified powders increases with increasing content of iron oxide in them. X-ray diffraction analysis using a synchrotron radiation source under heating to 1000°C showed the presence of only the basic phases of γ-Al2O3and α-Al2O3, γ-Fe2O3, and α-Fe2O3in the samples, and other iron oxides or intermetallic compounds were not detected. At a mass concentration of 10% Fe, an earlier appearance of the α-Al2O3phase was observed and the exothermic heat release peak was shifted to lower temperatures (893°C) compared to the unmodified ASD-4 powder (1045°C).