<p>A process for manufacturing granular iron, which comprises introducing agglomerates formed from a raw material mixture comprising both an iron oxide-containing substance and a carbonaceous reducing agent onto a hearth with a coal-based material laid thereon, and heating the agglomerates to reduce and melt the iron oxide contained in the agglomerates, characterized in that: the temperature of the agglomerates in the furnace is controlled within a range of 1200 to 1500°C; the oxygen partial pressure of the atmospheric gas when heating the agglomerates is adjusted to 2.0 × 10-13 atm or higher in terms of value at the standard state; and the linear velocity of the atmospheric gas in the furnace is adjusted to 4.5cm/s or higher.</p>