In order to solve the problem of solid waste pollution of basic oxygen furnace (BOF) slag in the metallurgical process, this paper took BOF slag as the research object, and carried out oxidation reconstruction of BOF slag and alcohol wet magnetic separation recovery of iron phase, so as to efficiently recover and utilize BOF slag. In the early stages, the research group realized the transformation from weak magnetic iron oxide to strong magnetic magnesia-iron spinel phase in BOF slag through oxidation reconstruction experiments under different technological parameters. On this basis, different conditions in the magnetic separation process were adjusted to achieve the optimal iron recovery rate and grade in this paper. The experimental results show that, under the appropriate reconstruction temperature, with the increase of reaction time, gas flow rate and magnetic field intensity, the iron recovery will increase and the iron grade will decrease. The most suitable magnetic field intensity is 75 mT, the magnetic material yield is 46.00%, the iron grade is 29.10%, and the iron recovery is 64.12%. Compared with the initial steel slag, the iron grade increased by 8.22%, and the iron recovery increased by 46.38% compared with the direct magnetic separation without oxidation.