In this paper we summarize the results of a Mössbauer study of the amorphous rare earth‐transition metal (RE‐TM) alloy DyFe2 in the magnetically ordered state. Both the 57Fe and 161Dy spectra were investigated as a function of temperature and reveal a broad, though measurable, distribution of Fe hyperfine fields (Heff) and quadrupole splittings (QS). There is a distribution similar in magnitude for the Dy hyperfine fields but the observed quadrupole splittings are narrowly distributed. The temperature variation of the 161Dy spectra indicates a large variation of local exchange splittings at the Dy sites. These results are discussed in terms of a model in which the Dy spins are more strongly coupled to their random‐direction anisotropy axes than to the neighboring Fe spins (which also experience a weaker random‐direction anisotropy.)