The rate coefficient for dielectronic recombination (DR) of Ne-like Fe16+ forming Na-like Fe15+ was measured employing the merged electron-ion beams technique at the heavy-ion storage-ring TSR of the Max-Planck-Institut für Kernphysik in Heidelberg, Germany. In the electron-ion collision energy range of 240–840 eV the merged-beams recombination rate coefficient is dominated by DR associated with 2s2 2p6 1S0 → 2s2 2p5 3d 1P1 core excitation. The experimental Fe16+ DR plasma rate coefficient is derived from the measured merged-beams rate coefficient. It is in good agreement with recent theoretical results.