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In-depth investigations were carried out on the thermal degradation and structural evolution of bakelite by heat treatment at different temperatures; the structural transformation to graphitic carbon at 1 450°C was confirmed through X-ray diffraction. High amounts of residual carbon were obtained after the high temperature charring of bakelite. The reduction behavior of iron oxide/bakelite composite pellets was studied at 1 450°C to investigate waste bakelite as a carbon resource in ironmaking towards a partial replacement of traditional carbon sources. These studies were carried out for raw bakelite as well as for bakelite char. The reduction of iron oxide by raw bakelite resulted in the non-separation of metal, slag and in the formation of direct reduced iron pellets. On the other hand, bakelite char pellet showed clear separation of iron nuggets from slag. This study has established bakelite as an alternative carbonaceous resource for reduction reactions in new ironmaking processes.