  The compound PrFe$_2$Al$_8$ possesses a three-dimensional network structure
resulting from the packing of Al polyhedra centered at the transition metal
element Fe and the rare earth Pr. Along the $c$-axis, Fe and Pr form {\em
chains} which are separated from each other by the Al-network. In this paper,
the magnetism and crystalline electric field effects in PrFe$_2$Al$_8$ are
investigated through the analysis of magnetization and specific heat data. A
magnetic phase transition in the Pr lattice is identified at
$T^{Pr}_{N}\approx$ 4~K in dc magnetization and ac susceptibility data. At 2~K,
the magnetization isotherm presents a ferromagnetic saturation, however,
failing to reach full spin-only ferromagnetic moment of Pr$^{3+}$. Metamagnetic
step-like low-field features are present in the magnetization curve at 2~K
which is shown to shift upon field-cooling the material. Arrott plots centered
around $T^{Pr}_{N}$ display "S"-like features suggestive of an inhomogeneous
magnetic state. The magnetic entropy, $S_m$, estimated from specific heat
outputs a value of $R$ ln(2) at $T_{N2}$ suggesting a doublet state for
Pr$^{3+}$. The magnetic specific heat is modeled by using a 9-level Schottky
equation pertinent to the Pr$^{3+}$ ion with $J$ = 4. Given the crystalline
electric field situation of Pr$^{3+}$, the inference of a doublet state from
specific heat and consequent long-range magnetic order is an unexpected result.
