In this study, Inconel 738 alloy was diffusion bonded to a ferritic stainless steel. The effect of bonding temperature on the microstructural development across the joint region was investigated. Following the diffusion bonding, conventional characterization techniques such as scanning electron microscopy (SEM), energy dispersive X-ray (EDX) and microhardness were used to examine the interfacial microstructure. It was seen that bonding temperature was effective on the diffusion of Ni from Inconel 738 to ferritic stainless steel that affected the microstructure of the interface. Austenite phase was formed at the interface as a result of Ni diffusion from the Inconel 738 to the interface.