A novel hierarchical microstructure has been identified in a TiFeAl alloy. TEM analysis revealed lens-like features that were comprised of nanoscale domains of an ordered intermetallic B2 phase enveloped by channels of an orthorhombic phase. This nanostructure reduced the misfit between the matrix and precipitates in the plane of the lenses, thereby providing better strain compatibility than precipitates consisting entirely of the B2 phase. The alloy demonstrated an exceptional Vickers hardness of 590 HV.