Microwave heating has attracted attention in heavy oil recovery and processing industry due to the benefits of volumetric, rapid and selective heating. The objective of this study is to prepare a microwave absorbing catalyst and examine its performance in catalytic upgrading of a heavy oil with microwave heating. It was found that oil viscosity decreased 90.00% and API gravity increased 1.24 degrees after upgrading over a prepared catalyst. SARA analysis of upgraded oils showed that the contents of resins and asphaltenes decreased; meanwhile, saturates and aromatics contents increased. The participation of the catalyst in oil upgrading reactions was further confirmed by analyzing the hydrocarbons in gas product.