We present the K-band infrared spectrum of the intermediate polar XY Ari .
The spectrum confirms the cataclysmic binary nature of XY Ari , showing emission lines of He I ( \lambda 2.0587 \mu m ) and the Brackett and Paschen series of H I .
The broad nature of these lines suggest an origin in an accretion disc .
The spectrum is strongly reddened by absorption within the molecular cloud Lynds 1457 and shows prominent absorption features from the secondary star , from which we determine a spectral type for the secondary of M0V .
The secondary contributes 80 \pm 6 % of the K-band light .
We derive a visual extinction to XY Ari of A _ { v } = 11.5 \pm 0.3 and a distance of d = 270 \pm 100 pc , placing XY Ari behind the molecular cloud .