In this study, the relationship between magnetostriction and microstructure for a Fe-30at-%Pd alloy was investigated. The alloy was fabricated by vacuum arc melting, followed by 24 h annealing under vacuum at 1000 °C and then by quenching in ice water. Crystal structure, orientation mapping, and phase identification were obtained by employing X-ray diffraction and electron back-scatter diffraction. Magnetic properties were measured using vibrating sample magnetometer. Magnetostriction of a Fe-30at-%Pd alloy was obtained using the digital image correlation technique under different magnetic fields. The maximum strain of Fe-30at-%Pd alloy was 5×10-4 at a magnetic field of 7500 Oe.