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Magnetism and magnetocaloric effect in RE AgAl ( RE = Er and Ho) intermetallic compounds have been studied. Both compounds undergo a second order magnetic phase transition from paramagnetic to ferromagnetic state. A large reversible magnetocaloric effect was observed around its own Curie temperatures T C ∼ 14 and 18 K for ErAgAl and HoAgAl, respectively. For a field change of 0–7 T, the maximum magnetic entropy change reaches 13.7 and 13.8 J/kg K for RE = Er and Ho, respectively. The corresponding relative cooling powers are evaluated to be 398 and 525 J/kg. [ABSTRACT FROM AUTHOR]