The phenomenon of internal friction recovery of Al-16 wt %Ag and Al-16 wt %Ag-0.28 wt % Fe alloys is studied after cold-working the samples in uniaxial tension using the free decay method. The wire samples are investigated for internal friction recovery while they were loaded-within the elastic limit-by different loads at different resting temperatures. It is found that by increasing the temporary loading the rate of recovery decreases. TEM investigations confirmed that the addition of Fe to Al-Ag alloy accelerates the formation and coarsening of G.P.zones. The results are explained on the basis of dislocation damping adopting the Granato-Lucke model for recovery of internal friction.