Compositions and methods have been discovered for inhibiting corrosion of metals, particularly iron alloys, in contact with fluids, either hydrocarbons, alcohols, or aqueous fluids, employing mercaptoalcohols. The mercaptoalcohols should have at least one water solubilizing hydroxyl group. In particular, suitable mercaptoalcohols have the formula: (HS)n—R—(OH)m where R is a straight, branched, cyclic or heterocyclic alkylene, arylene, alkylarylene, arylalkylene, or hydrocarbon moiety having from 1 to 30 carbon atoms; n and m each independently averages from 1 to 3; and the heteroatom in the heterocyclic moiety substituent, if present, may be N, O, S and/or P. Preferred mercaptoalcohols include 2-mercaptoethanol, 2-mercaptopropanol, 1-mercapto-2-propanol, and 2-mercaptobutanol, in part because they are soluble in many fluids. These corrosion inhibitors show improved inhibition of both generalized and localized corrosion, specifically in high shear and high flow environments.