In this study, the effect of small additions of lithium on the microstructure and morphology of Fe-containing intermetallic compounds in A360 alloy has been investigated. Different Fe contents (1, 1.5 and 2%) were added into A360 alloy, and Li concentrations also varied from 0 to 0.5 wt. %. The image analysis results showed that, the maximum length of β-Al5FeSi plate in Li-modified specimens is changed significantly in comparison with non-modified ones. It is evident that the maximum reduction in the average length of Fe containing platelets occurs in specimens with 2% Fe. Also, the lowest changes in the length of intermetallic phases -as Fe content decreases- occur in the 0.5 wt% Li. At higher Li concentrations, the presence of Al-Li-Si intermetallics in the microstructure can provide undesirable condition. This intermetallic can be so damaging in mechanical properties especially in coarse shapes.