This invention provides a process for producing a reduced iron pellets. In the production process, in heating a molded product of a powder containing iron oxide and carbon in a rotary hearth-type reducing furnace to perform reduction treatment, a molded product produced using a raw material containing the iron oxide, of which the average particle diameter is not more than 50 microns, is reduced under conditions of a carbon monoxide to carbon dioxide ratio in a reduction zone of 0.3 to 1 and a temperature of 1400 C or below to produce reduced iron pellets having a percentage metallization of iron of 50 to 85% and a percentage residual carbon of not more than 2%.