The thermal simulation research on behavior of reduction and melting of carbon-bearing pellets was carried out by using the high temperature electric resistance furnace, and the influences of roasting temperature, roasting time, carbon content (carbon/oxygen ratio) and slag basicity etc. on reduction and melting of carbon-bearing pellets were investigated. The experimental results show that, the lowest melting temperature of iron and slag separation is 1360 ℃, the shortest reduction time is 24.5min, the lowest carbon content (calculated by C/O) is 1.0, and the optimal binary basicity of slag is 1.2.