Corrosion behavior of SS316L in lead–lithium eutectic in the presence of oxygen was investigated in a thermal convection loop for 1000 h of exposure. At a thermal gradient of 100 K, a 20 lm deep ferrite  layer was formed on the exposed surface. Introduction of oxygen resulted in a substantially high chromium depletion from the steel matrix. EPMA profiles revealed the presence of chromium enriched, lead free layer over the surface facing liquid lead–lithium. XRD data confirmed the presence of LiCrO₂ and Cr₂O₃ in this layer. It is expected that this layer at the interface can act as a passive boundary and thus prevent continued corrosion by liquid metal.