We present a …rst principles study of the magnetoresistance (MR) perpendicular to the planes of atoms and the interlayer exchange coupling (IEC) in Fe/Si/Fe trilayers. In both cases the dependence on the number of spacer layers is investigated, whereby the spacer thickness ranges between 3 and 21 Å for the IEC and extends to 33 Å for the MR in order to obtain the asymptotic behavior. Additionally, the in‡uence of alloy formation at the interfaces on the MR and the IEC is examined. The calculations of the electronic structure are performed ¤ Corresponding author: Tel. +43 1 58801 15834; fax: +43 1 58801 15898, email: hh@cms.tuwien.ac.at 1 within the fully relativistic spin-polarized screened Korringa-KohnRostoker method and the transport properties are derived from the Kubo-Greenwood equation. Our results give evidence that interdiffusion is one of the origins of the small magnetoresistance, which is observed experimentally in Fe/Si/Fe trilayers. AFM coupling occurs for spacers thicker than 4 Å which is in accordance with the experimental …ndings. It seems that interdi¤usion stabilizes AFM coupling in Fe/Si/Fe trilayers.