Two AlFe-PILC catalysts were prepared with different OH/metal ratio and applied in nitrous oxide (N2O) decomposition reactions. The 100% conversion of N2O with NH3 into N-2 and H2O was achieved below 500 degrees C with both applied catalysts. However, the activity of catalysts in direct conversion of N2O into N-2 and O-2 did not exceed 40% below 500 degrees C. In this reaction the activity of AlFe-PILC catalyst synthesized at higher OH/metal ratio (4) is higher compared with the activity of AlFe-PILC catalyst with OH/metal ratio (2). Free FeO-Fe2O3 particles were registered in the AlFe-PILC catalyst with higher OH/metal ratio (4).