Whereas, the search for alternative energy sources is an important way to reduce CO₂ emissions in the iron and steel industry, and biomass energy is an alternative energy source with CO₂ zero-emissions. On the basis of expounding the application of biomass fuel in iron-making process, its application in terms of iron ore pellets is highlighted and its reduction principles and current research are outlined. The conclusion shows that: natural biomass, biochar, and lignin all have a good reducibility to iron ore, among them, lignin has the strongest reducibility, and its reducing capacity is higher than that of pulverized coal and CO; the cellulose extracted from biomass can be modified into a pellet binder or a binder phase, which can be used to improve the strength of biomass iron ore pellets. At last, natural biomass iron ore pellets, biochar iron ore pellets and biomass intermediate iron ore pellets are pointed out to be the three directions of the future development direction of biomass iron ore pellets, and the development of high-strength and high-reactivity biomass iron ore pellets is taken as an important trend of future development.