The effect of N content on the characteristics and formation of inclusions in the Fe-5Mn-3Al steels was investigated in this study. Two synthetic steel melts were produced by two different methods—N2 gas purging and injecting—to introduce nitrogen into the melt. The N content of steel melt varied from 2 to 54 ppm. An increase in the N content to 47 ppm (for 533N-P) and 58 ppm (for 533N-I) increased the total amount of inclusions from 13 to 64 mm−2 and from 21 to 101 mm−2, respectively. The observed inclusions were Al2O3(pure), Al2O3-MnS, AlN(pure), AlN-MnS, AlON, AlON-MnS, and MnS. When the N content was less than 10 ppm, AlN-MnS inclusions were the primary type of inclusions and they formed as solidification products. With an increase in the N content, AlN(pure) inclusions became the dominant type of inclusions as AlN was stable in the liquid steel. These findings were confirmed by thermodynamic calculations. The influence of cooling rate on the types of inclusions was studied and a higher number of AlN-MnS inclusions were observed in samples with slow cooling rate.