Lamellar eutectic structure of Al_0.7CoCrFeNi high-entropy alloy (HEA) is emerging as a promising candidate for structural applications because of its high strength-ductility combination. The alloy consists of a fine-scale lamellar fcc+B2 microstructure with high flow stresses >1500 MPa under quasi-static conditions. The response to shear loading was not investigated so far. This is the first report on the shear deformation of an eutectic structured HEA and effect of precipitation on shear deformation. The dynamic shear response (DSR) of the eutectic HEA was examined in two microstructural conditions, with and without the presence of L1₂ precipitates. A split-Hopkinson pressure bar (SHPB) was used to compress the hat-shaped specimens to study the local DSR of the alloy. The adiabatic shear bands (ASBs) in two different microstructural conditions were characterized after deformation at dynamic strain rates. The adiabatic shear localization occurs at low strains for the high strength material, and the eutectic microstructure does not delay cracking. The width of ASBs and the extent of plastic deformation around them has been correlated with the rate of straining. Dynamic recrystallization within ASBs and profuse twinning around it was observed. Local mechanical response of individual lamellae before and after shear deformation was examined using nano-indentation.