Corrosion behavior of 18Cr ferritic steel with and without yttria produced by high-energy milling followed by hot extrusion was studied in 3.5% NaCl solution using electrochemical and immersion techniques. The cyclic polarization study showed that pitting corrosion is predominant in all the materials. The pitting rate is higher in yttria dispersed steels and also increases with milling time. Impedance analysis revealed the formation of better corrosion resistance film on the surface of the steel without yttria. Potentiodynamic polarization studies indicated that the corrosion rate decreased up to 48 h of exposure time and increased beyond 48 h. The increase in corrosion rate beyond 48 h is due to the porous passive film. The corrosion behavior of all the materials in immersion studies followed the same trend as observed in electrochemical studies. Even though the corrosion rate of yttria dispersed 18Cr ferritic steel is less than that of the base material, the difference is marginal. The presence of dispersoids appears to promote nucleation of pits when compared to the steel without the dispersoids. © 2015, ASM International.