Precipitation of Fe 2 W Laves phase in a 12Cr-2W power plant steel is investigated by using transmission electron microscopy (TEM). Fe 2 W Laves phase is found to be coherent with the matrix and has a stacking fault structure. The influence of formation of Fe 2 W Laves phase on the yield strength of the steel is quantitatively evaluated. The modeling result indicates that the strengthening effect from the formation of Laves phase particles is diminished by the loss of solid solution strengthening of alloying elements, and, as a result, the strength of the steel remains similar. The effect of clustering and coarsening of Laves precipitates on the strength of the steel is also studied. It is showed that clustering and coarsening decreases the strengthening effect of Laves phase. The limitation of the modeling approach currently adopted is also discussed.