The formation of nanoquasicrystallites in stable icosahedral Al-Cu-Fe quasicrystalline thin films by implementing an indirect heating method from a single source is discussed in this paper. The final composition of the quasicrystalline thin films is found to be Al62.9Cu24.6Fe12.5 using x-ray fluorescence spectroscopy. The icosahedral nanoquasicrystallites formation is studied by glancing-angle x-ray diffraction and transmission electron microscopy. The size of the nanoquasicrystallites is estimated to be 4-20 nm. The density of nanoquasicrystallites is calculated as (1 ± 2) × 1012 cm-2. The improvement of the icosahedral phase formation with increasing annealing temperature is also verified by measuring the change in resistivity with temperature in the range 10-300 K. The resistivity of the best film, which is obtained by annealing the as-deposited films at 700 °C for 1h, is calculated to be ∼2000 μΩ cm at room temperature and ∼4000μΩ cm at 10 K.