The paper investigated the effects of different amounts (0%, 3%, 6%, 9%) of in situ multilayer graphene/MgAl2O4 composite powders on the slag resistance, thermal shock resistance, and oxidation resistance of low‐carbon MgO‐C refractories. Comparing with commercial MgAl2O4, the MgAl2O4 in in situ multilayer graphene/MgAl2O4 composite powders has higher lattice strain of crystal, which can trap more Mn and Fe ions, resulting in the better slag resistance. The oxidation decarbonation layer of MgO‐C specimen with 3% composite powders is 9.71 mm, which is lower than not only the specimen with other contents but also specimen containing carbon black/MgAl2O4 powders. Moreover, the residual strength ratio of the specimen C/MA‐3 was 47.47%, which is 28.5% and 8.08% higher than specimens with no additive and with carbon black/MgAl2O4 powders, respectively. Both improving thermal shock and oxidation resistance properties are related with the unique nano structure, multilayer graphene in situ formed between MgAl2O4 grains, of added composite powders. The former is due to higher strain energy consumed by multi‐deflection of cracks inside the multilayer graphene/MgAl2O4 composite powders. And the latter is due to the higher energy of oxidation activation of multilayer graphene/MgAl2O4 composite powders due to effective protection of multilayer graphene by MgAl2O4.