Creep deformation in ultrafine-grained (0.1 to 1/~m) Fe-doped magnesia polycrystals is studied in compression, at temperatures of 700 to 1050 ~ C, and constant loads of 50 to 140 MPa. The stress exponent observed to be nearly unity and the strong grain size sensitivity (~ ~ d -2-*s ) suggest that diffusional creep mechanisms dominate the deformation. In the grain size range of the present study the grain boundary diffusion contribution is significantly more important than lattice diffusion. Magnesium is tentatively identified as the rate-controlling species along grain boundaries from an analysis of the diffusivities inferred from the present work and from other authors for Fe-doped magnesia.