We study impurity bound states and impurity-induced order in the superconducting state of LiFeAs within a realistic five-band model based on the band structure and impurity potentials obtained from density functional theory (DFT). In agreement with recent experiments, we find that Co impurities are too weak produce sub-gap bound states, whereas stronger impurities like Cu do. We also obtain the bound state spectrum for magnetic impurities, such as Mn, and show how spin-resolved tunnelling may determine the nature of the various defect sites in iron pnictides, a prerequisite for using impurity bound states as a probe of the ground state pairing symmetry. Lastly we show how impurities pin both orbital and magnetic order, providing an explanation for a growing set of experimental evidence for unusual magnetic phases in doped iron pnictides.PACS numbers: 74.70.Xa, 74.62.En, It is crucial to understand the role of disorder in hightemperature superconductors (SC) because the materials are obtained from chemical doping with substitutional impurity atoms. In addition, through the large advance of scanning tunneling microscopy (STM), local perturbations in the host material act as nano-probes of the underlying quantum state. For the Fe-based superconductors (FeSC), a recent series of experiments have measured the local density of states (LDOS) near various impurity sites.[1] In particular, STM measurements within the SC state have focussed largely on FeSe, LiFeAs, and NaFeAs,[2-8] revealing a complex pattern of distinct impurity-induced LDOS modulations including unusual sub-gap bound states, local C 4 symmetry breaking, and generation of electronic dimers. At present no theoretical model exists which correctly captures the LDOS structure near these different impurity sites.Theoretically, both potential and magnetic point-like scatterers can generate in-gap bound states in multi-band s ± -wave SC. The single-impurity problem has been addressed both within simplified two-band models, [9][10][11][12][13][14][15] and a five-band approach, [16] reaching, however, different conclusions about the presence and location of ingap bound states. Recently, an important source of this discrepancy was shown to be the sensitivity of the low-energy states to the band structure and SC gap shape. [17,18] For modelling disorder effects in FeSC, it is therefore crucial to include the correct band structure and minimise the sensitivity of the gap structure by self-consistently calculating the SC gaps arising from this band.A final important recent development is the observation of a component of SDW order observed by e.g. muon spin rotation (µSR) experiments [19][20][21] which "cooperates" with, rather than competes with SC as is commonly assumed. This component, which exists in an intermediate doping range around optimal doping, is evidently correlated with disorder and disappears above T c . This type of disorder-induced magnetism supported by the SC state is reminiscent of that observed in underdoped cuprates where a wedge-like extension...