Microstructure modifications induced by sliding a WC-Co indenter in scratch tests on the surface of a single phase AlCuFe icosahedral quasicrystal (IQC) was studied by scanning electron microscopy (SEM) and transmission electron microscopy (TEM). The scratch track was shown tocomprise many smaller tracks. Dislocations were discovered to emerge from the edges of the smaller scratch tracks. Along a small track where shear stress is concentrated, a phase transition from IQC to a body-centered cubic (b.c.c.) phase with lattice parameter a=0.29 nm was pointed out. A modulated quasicrystal state as well as a deformation twin of IQC were determined in the region beneath the scratch.