The effect of substitution of Y for Fe on the glass forming ability (GFA), magnetic and mechanical property has been studied in Fe_77−xNb₆B₁₇Y_x (x = 0–4) alloys. Replacement of 1–4at.% Fe by Y increased the thermal stability of the glass and liquid phase in the Fe–Nb–B–Y alloys. It was found that the Fe₇₄Nb₆B₁₇Y₃ alloy exhibited the largest T_rg (0.60) and γ (= T_x/[T_g + T_L]) (0.396) values enabling the fabrication of bulk metallic glass (BMG) with a diameter of up to 2mm. The BMG alloy (≥74at.% Fe) exhibited high compressive fracture strength and hardness of about 3GPa and 1060Hv, respectively. The partial replacement of 3at.% Fe by Y in Fe–Nb–Y–B improved the alloy magnetization saturation by about 10%.