The influence of the alloy grain size on the oxidation behaviour in air between 900 and 1400 °C of oxide dispersion strengthened PM2000 alloy was studied. The grain size of the alloy affects the morphology, the composition of the alumina scale as well as the size, composition and volume fraction of nodules formed on the alumina scale, but has only a small influence in the kinetics. In the fine-grained PM2000, grain boundaries act as rapid pathways for aluminium diffusion, leading to the establishment of a purer alumina scale than that formed on coarse-grained material. On the coarse-grained alloy, there is enough time for the nucleation of oxides other than alumina. These oxides, impeding alumina grain growth, can lead to the formation of a fine-grained alumina layer. The outward cation and inward oxygen diffusion in this fine-grained alumina layer may contribute to both the slight increase in mass-gain and the increased tendency to form nodules at the outer surface.