Lithospheric mantle is inferred to be more oxidized than the asthenosphere, and mantle-wedge peridotites are characterized by high oxidation state relative to abyssal and continental peridotites due to addition of slab-derived fluids or melts. We found metals (native Ni, Fe silicides, native Fe and possible native Ti) from otherwise oxidized sub-arc mantle peridotite xenoliths from Avacha volcano, Kamchatka. This is contrary to the consensus and experimental results that the metals are stable only in deeper parts of the mantle (> 250 km). The metals from Avacha are different in chemistry and petrography from those in serpentinized peridotites. The Avacha metals are characteristically out of chemical equilibrium between individual grains as well as with surrounding peridotite minerals. This indicates their independent formation from different fluids. Some of the Avacha metals form inclusion trails with fluids and pyroxenes, leading to the inference that very local metal saturation resulted from rapid supply (‘flashing’) of reducing fluids from deeper levels. The fluids, possibly rich in H2, are formed by serpentinization at the cold base of the mantle wedge just above the slab, and they reduce overlying peridotites. We propose a metal-saturated peridotite layer, underlying the main oxidized portion, within the mantle wedge beneath the volcanic front to fore-arc region.