We investigate the influence of correlations and plasmonic excitation on the valence band satellite of $\alpha$-Fe, along with magnetic and spectral properties as a function of temperature. Coulomb interaction parameters are obtained by systematically employing various schemes within the constrained random-phase approximation (cRPA). This study identifies the presence of valence band satellite in Fe at $\sim 6\mathrm{eV}$ binding energy supported by (i) substantial incoherent spectral weight in the valence band spectra obtained from Density Functional Theory plus Dynamical Mean Field Theory $(\mathrm{DFT}+\mathrm{DMFT})$ and (ii) plasmonic excitations in the frequency range $\sim 6–8\mathrm{eV}$ suggested by $G_0{W}_0$ calculations. We note a significant contribution from the temperature-dependent Pauli spin susceptibility, indicating a competing degree of itinerancy. $e_g$ state shows a strong temperature-driven non-Fermi-liquid behavior emerging near $T_c$. Our results reveal that a high-temperature orbital-selective loss of coherence eventually leads to an orbital-selective collapse of magnetization at $T_c$, suggesting a ferromagnetic phase characterized by strong correlation- and temperature- dependent spectral features.

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• Magnetism
• Plasmons
• Quasiparticles & collective excitations
• Metals
• DFT+DMFT
• GW method