Abstract: The reduction experiment was carried out on carbon-bearing pellets made of iron concentrate,pulverized coal and limestone. Morphology observation and separation degree of slag-metal had been analyzed. Based on these investigations an optimum experimental program for reduction and separation process was obtained as follows: temperature is 1 480 ℃,C/O is 1.2,reduction time is 22 min and binary basicity of slag R₂ is 1.0. The optimal experiment scheme resulted in the highest reduction degree and a good quality index of granular iron,and the iron yield reached up to 98.62%.