Blast furnace (BF) dust is a typical refractory iron resource. A novel technology-based utilization of BF dust as iron carbide and carbon concentrate by applying carburization roasting followed by magnetic separation and acid leaching is proposed. Under optimized conditions, an electric arc furnace (EAF) burden assaying 80.79% Fe and 7.63% C with a corresponding iron recovery rate of 87.26% and a carbon concentrate assaying 67.06% C with a corresponding carbon recovery rate of 81.23% were prepared. Furthermore, the carburization behavior and separation mechanism were revealed using X-ray powder diffraction, scanning electron microscopy, and optical microscopy. The results show that the separation efficiency of iron carbide, gangue, and carbon is very low. Na2SO4 is a highly effective additive to strengthen the separation efficiency as it can enhance the carburization index, enlarge the iron carbide particle size, improve the embed embedded relationship of iron carbide and gangue, and promote the gangue leaching efficiency. The study demonstrates that preparation of iron carbide and carbon concentrate from BF dust using the proposed technology is a feasible method.