This article investigates the effect of bentonite on the balling performance of ultra pure iron powder through experiments. The optimal ratio was determined by measuring the compressive strength and drop strength of the raw pellets. Subsequently, the bursting performance of each ratio of pellets was measured, and pellet roasting experiments were conducted under the optimal bentonite ratio conditions to determine the appropriate roasting system. Finally, the compressive strength and chemical composition of the roasted finished pellets were measured to research the reduction performance of high-grade pellets under different temperature conditions. The results show that the compressive strength of the pellets increases significantly with the increase of the roasting temperature. By measuring the metallurgical properties of pellets, under the isothermal conditions of 900 °C, under the experimental conditions of CO reduction for 180 min, the composition of reducing gas is CO:N2 = 3:7, and the flow rate is 15 L/min, the reduction degree is determined to be 71.24%, and the performance meets the requirements of pellets for hydrogen metallurgy.