A great amount of red mud generated from alumina production by Bayer process was considered as a low-grade iron ore with a grade of 5wt% to 30wt% iron. We adopted the reduction roasting-magnetic separation process to recover ferric oxide from red mud. The red mud samples were processed by reduction roasting, grinding and magnetic separating respectively. The effects of different parameters on the recovery rate of iron were studied in detail. The optimum techqical parameters were proposed with 700℃ roasting for 20 min, as 50wt% carbon and 4wt% additive were added. The experimental results indicated that the iron recovery and the grade of total iron were 91% and 60%, respectively. A novel process is applicable to recover ferric oxide from the red mud waste ifnes.