The effects of the addition of rare earth (RE) elements on the void band in the diffusion layer, and the resistances to both oxidation and spalling of aluminized steel were investigated through high temperature oxidation and spalling tests. The results showed that RE had significant effects on the void band in the diffusion layer and the properties of aluminized steel. After diffusion treatment, a considerable number of the voids between the middle layer and transitional layer of pure aluminized coating, aggregated into wavy-line-shaped void bands parallel to the outer surface. For the RE-added aluminized coating, only a few voids aggregated into intermittent block shapes. During high temperature oxidation at 800 ℃ for 200 h, the wavy void band of pure aluminized coating aggregated further into a linear crack parallel to the outer surface, and the internal oxidation occurred within them; the open cracks perpendicular to the surface penetrated through the diffusion layer. For the RE-added aluminized coating, only a few voids aggregated into intermittent meniscus shapes. During cyclic spalling tests, the peeling, spallation, and pulverulent cracking occurred along the void band in the diffusion layer of pure aluminized coating, but only a little spallation occurred in the diffusion layer of the RE-added aluminized coating, in which cracks perpendicular to the surface were much smaller than those of pure aluminized coating and did not penetrate through the diffusion layer. It is evident that RE addition can restrain the formation and aggregation of voids and subsequently improve the resistances to oxidation and spalling. The mechanism of the RE effect on the void band in the diffusion layer is also discussed.