This study presents new lightweight periclase-magnesium alumina spinel refractories for the working lining of cement rotary kilns in which magnesium alumina spinel hollow spheres are used to replace conventional dense fused magnesiaaluminate spinel aggregates. The effects of adding spinel hollow spheres on the physical properties, mechanical strength, thermal conductivity, and slag resistance of the samples were explored. The results showed that compared with the sample prepared with dense aggregates, the sample prepared with hollow spheres had a 10.3% higher cold compressive strength, 44.1% higher modulus of rupture (MOR), and lower bulk density. Additionally, with increasing hollow spheres content, the thermal conductivity decreased from 3.79 W/(m⋅K) to 2.53 W/(m⋅K), and the high-temperature MOR increased from 2.82 to 4.09 MPa. The highest residual strength ratio was 90.73% (15 wt.% hollow spheres), which is 1.17 times that of the sample prepared without hollow spheres. Moreover, microstructure and energy dispersive spectroscopy of crucible specimens after corrosion by cement clinker showed that specimens with 15 wt.% hollow sphere additions had a better slag resistance. Introducing hollow spheres reduced the thermal conductivity of the refractories, providing a new strategy for improving the heat insulation performance of kiln linings.