This paper presents results of joining of AA5754 and DP800 based on the friction stir welding process. Joints were produced by the tool made of H13 tool steel which was allowed to penetrate through the aluminium sheet until reaching the surface of steel sheet without penetrating into it. This approach is an economic and robust way to operate the dissimilar welding process without excessive tool cost. Bonding was achieved by interfacial diffusion reactions between aluminium and iron with a formation of intermetallic compounds. The formation of brittle intermetallic compounds at the interface between the materials was studied. Three intermetallic phases were found at the interface including Al13Fe4, Al5Fe2 and Fe3Zn10. A range of process parameters was identified with a thickness of the intermetallic layers around 2 µm. Shear fracture failure mode was observed under overlap loading. The mechanisms of formation of the joints and factors controlling the strength were discussed.