In the present investigation an attempt has been made to study the reduction behaviour of double layer pellets consisting of a core of iron ore and a non-coking coal mixture within a shell of iron ore. The reduction tests were conducted under isothermal conditions in the temperature range 1000-1200 degrees C. The variables (parameters) studied are reduction temperature, carbon/iron oxide ratio and reduction time. The experiments were statistically designed such that the effect of each variable and interactional effect of different variables can be quantitatively assessed. The results show that the effect of reduction temperature on degree of reduction is strongest, followed by reduction time and carbon/iron oxide ratio.