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This article describes the results of an investigation into the microstructure and mechanical properties of a gravity die cast and direct squeeze cast LM25 alloy (Al-7Si-0.3Mg-0.3Fe). The direct squeeze cast LM25 alloy has superior mechanical properties compared to the gravity die cast LM25 alloy, especially with regard to ductility, which is increased from ϳ1.7 pct for the gravity die cast LM25 alloy to ϳ8.0 pct for the direct squeeze cast LM25 alloy in the T6 heat-treated condition. This increase in ductility is due to (1) the removal of porosity, (2) a decrease in Si particle size, and (3) a refinement of the Fe-Si-aluminide particles. High cooling rates in direct squeeze casting result in quench modification of the Si particles, such that chemical modification with Sr or Na may not be required. In addition, direct squeeze casting is more tolerant of Fe impurities in the alloy, due to the formation of smaller Fe-Si-aluminide particles than those in gravity die cast material. The direct squeeze cast LM25 ϩ Fe alloy (Al-7Si-0.3Mg-1.0Fe) has a ductility of ϳ6.5 pct, compared to that of ϳ0.5 pct for the gravity die cast LM25 ϩ Fe alloy in the T6 heat-treated condition. This increase in tolerance to Fe impurities can lead to a substantial reduction in manufacturing costs due to (1) reduced raw-material costs, (2) reduced die sticking, and (3) improved die life.