An investigation of the InP͑001͒ surface and the characterization of thin Fe films grown on this substrate at Ϸ150 and Ϸ300 K are presented. As substrates, highly ordered P-rich (2ϫ4) reconstructed surfaces obtained by Ar ϩ ion bombardment at Ϸ570 K were used. The growth of Fe films in the submonolayer thickness range and the magnetic properties of thin Fe films grown on P-rich (2ϫ4) InP͑001͒ are reported. We observe a uniaxial in-plane magnetic anisotropy up to an Fe thickness of Ϸ14 monolayers, which is related to the uniaxial character of the InP͑001͒ reconstruction. From the magnetization behavior we obtained the surface/ interface contribution to the uniaxial anisotropy, and deduced that very small, if any, magnetically dead layers form at the interface. Auger electron spectroscopy data reveal that about one monolayer of In segregates to the top of the growing Fe film at Ϸ300 K, but does not support a strong Fe-InP͑001͒ intermixing, in contrast to the current belief. The current-voltage characterization of patterned Fe films grown on n-InP͑001͒ shows nonrectifying contacts at room temperature.