High performance carbon containing castables have always been pursued by researchers and steelmaking producers, unfortunately, poor water‐wettability of graphite flakes was greatly limited their application in castables. To respond this, we proposed a large‐scale and low‐cost modified molten salt shielding synthesis technique for fabricating TiC coated graphite in air atmosphere using graphite flake and Ti powder as raw materials. Microstructure, wettability and oxidation resistance of TiC@C powders, and effect of TiC@C powders on the properties of Al2O3‐MgO‐C castables were investigated. The results demonstrate that TiC coated graphite was synthesized via modified molten salt shielding synthesis route in air atmosphere. A uniform and continuous TiC layer was formed on the surface of graphite, thereby significantly improving the water‐wettability and oxidation resistance of graphite flakes. The castables with 5% TiC@C powders possessed lower apparent porosity, higher cold strength, good oxidation resistance, and slag resistance in comparison with the castables with graphite flakes, and slag resistance were also better than Al2O3‐MgO castables. The as‐fabricated TiC@C powders have good water‐wettability and oxidation resistance, making them as a prime carbon source for producing carbon containing castables for steel ladle linings.