Corrosion of the cell components is a major problem in the development of the molten carbonate fuel cell (MCFC). This study describes the effect of sensitization on the corrosion characteristics of AISI-type 316L stainless steel in a 62/38 lithium-potassium carbonate eutectic melt in the cathode-gas environment. After solution treatment at 1200 degrees C for 4 h followed by sensitization treatment at 650 degrees C for predetermined time, the corrosion behaviour of the sensitized sample is analyzed electrochemically by a potentiodynamic method. The sensitized sample displays behaviour which is typical of active-passive transition. Increasing the time of the sensitization treatment causes the corrosion potential to shift in the cathodic direction. In addition, the passive film becomes more unstable and supports a high passive current, i.e., the substrate is more susceptible to intergranular corrosion (IGC). Morphological observation of samples immersed in a carbonate melt reveal a change in corrosion mechanism from initial IGC to localized corrosion. Huge cavities develop from grooves after 200 h of immersion in a carbonate melt. A combination of a Cr-depleted region due to sensitization and decreasing oxygen concentration from top to bottom of the oxide layer, is considered to be the main reason for the change in corrosion morphology.