New α+β type titanium alloy with Ti-4.5Al-6Nb-2Mo-2Fe was developed on the basis of using biocompatible elements and eliminating the cytotoxic ones such as Vanadium, while achieving the desirable mechanical properties such as appropriate strength, cold workability and low superplastic forming (SPF) temperature. The present study was conducted to investigate the effect of yttrium addition of less than 0.05% into this alloy on static and under superplastic deformation grain growth behavior. The new alloy bar manufactured by α+β processing and annealed at 1073K yielded extremely fine two-phase microstructure with α grain size around 2μm. Specimens were heated at temperatures of 1048, 1073 and 1098K and kept for times between 3.6 to 172.8KS. Yttrium forms in-situ Y2O3 particles, and the presence of these particles yield finer two phase microstructure due to their retardation effect on β phase grain growth. Grain growth behavior during hot deformation was investigated by hot compression test in use of a hot working simulator of THERMEC-Master Z. Strain rate was varied from 2×10-2 to 2×10-4S-1 and strain was 0.69. Grain size of both α and β phases increased with a reduction of strain rate, and Y2O3 particle was also effective to retard grain growth under hot deformation. It was confirmed from comparison of grain growth during isothermal heating with and without hot deformation that grain growth was much accelerated by deformation. All of these results were discussed based on grain growth mechanism or model for two-phase microstructures as well as superplastic deformation mechanism.