The magnetism and electronic structure of bcc Al₁Fe₂₆ was investigated by means of first-principles calculations with and without spin-orbit coupling (SOC). From the calculated total energy, the SOC corrected system is shown to be approximately 5 meV per atom lower than the SOC uncorrected system. The induced spin magnetic moment at the Al site was −0.125 _μB without SOC and −0.124  _μB  with SOC. The orbital magnetic moments were calculated to be 0.002  _μB  in [ 00] direction for Al. The electronic structures showed the nearest neighbor antiferromagnetic interaction between Fe and Al to be essential for determining the magnetism of the Al₁Fe₂₆ system.