Alumina-forming Austenitic (AFA) steel is one of the candidate corrosion-resistant structural materials for lead-cooled fast reactors, exhibiting excellent high-temperature corrosion resistance. However, its corrosion mechanisms in lead-bismuth eutectic (LBE) environment at the design operating temperature of lead-cooled fast reactors have not been fully elucidated. In this study, AFA steel was immersed in static LBE with saturated oxygen at 500 °C for 3000 hours. The corrosion behavior of AFA samples was obtained by analyzing the morphology of corrosion cross section and the distribution of elements. The results showed that the AFA steel did not form an oxide film that could effectively resist LBE. Dissolution corrosion of the matrix becomes more severe the longer the exposure time. When the NiAl phase in the matrix is located at the surface, oxide nodules are generated. It has a double-layer oxide structure, which has better resistance to LBE corrosion. Nb undergoes oxidative rupture and has a tendency to detach from the surface of the substrate when it is located on the surface. Cracks occur on the surface of the matrix after 3000 hours of corrosion, and LBE penetrates into the matrix along the cracks.