Herein, the optimized process parameters for the preparation of vanadium‐titanium magnetite (VTM) pellets are determined, and an efficient and green utilization technology for VTM based on the integration of oxidation roasting‐hydrogen‐based shaft furnace direct reduction is established. The results indicate that the preferable VTM oxidized and pre‐reduced pellets can be prepared by preheating at 925 °C for 18 min and roasting at 1200 °C for 25 min, followed by the reduction temperature of 1050 °C at the reduction atmosphere of 4% CO2 and H2/CO = 8. The corresponding compressive strength of the preheated and roasted pellets is 516 N per pellet and 2028 N per pellet, respectively. In addition, the LTD+6.3 and LTDUP of roasted pellets are 80.86% and 93.90%, and the corresponding reducibility index, reduction swelling index, and the reduction sticking index are 0.0428, 2.32%, and 2.50%, respectively. All of which meet the production requirements of hydrogen‐based shaft furnace.