Highly wear-resistant alloys are important in many engineering and biomedical applications. In this research, a multi-phase quasicrystal-based alloy was developed using a rapid arc-melting technique. The alloy contains three characteristic phases, hard λ-Al13Fe4, quasicrystal icosahedral (i-phase), and ductile τ-AlCu. The Vickers micro hardness of each was 828, 795, and 552, respectively, with an overall hardness of 334 (HR15T). Due to the co-existence of these three phases, this alloy exhibits both hardness and ductility. As such, the new material has favorable wear and crack resistance. The approaches used in this study are beneficial for the future design and development of this class of quasicrystalline alloys.