The creep behavior of a new type of austenitic heat-resistant steel Fe-20Cr-30Ni-2Nb (at.%), strengthened by intermetallic Fe2Nb Laves phase, has been examined. Particular attention has been given to the role of grain boundary Laves phase in the strengthening mechanism during long-term creep. The creep resistance increases with increasing area fraction (ρ) of grain boundary Laves phase according to equation ε/ε = (1−ρ), where ε0 is the creep rate at ρ = 0. In addition, the creep rupture life is also extended with increasing ρ without ductility loss, which can yield up to 77% of elongation even at ρ = 89%. Microstructure analysis revealed local deformation and well-developed subgrains formation near the grain boundary free from precipitates, while dislocation pile-ups were observed near the grain boundary Laves phase. Thus, the grain boundary Laves phase is effective in suppressing the local deformation by preventing dislocation motion, and thereby increases the long-term creep rupture strength. This novel creep strengthening mechanism was proposed as “grain boundary precipitation strengthening mechanism” (GBPS).