Effect of Cr₂O₃ on the reduction mechanism of high-chromium vanadium-titanium pellets was firstly studied in the present paper. It is found that Cr₂O₃ has an obvious effect on the reduction of high chromium vanadium-titanium pellets. With increasing Cr₂O₃ content from 0.28% to 8.22%, the reduction extents increased slightly and then decreased, and the reduction mechanism was further elucidated by means of XRD and SEM-EDS. Effect of Cr₂O₃ on the smelting mechanism of high-chromium vanadium-titanium pellets was also studied in the present paper. With increasing Cr₂O₃ contents from 0.28% to 8.22%, the softening start temperature and the softening temperature gradually increased, and the softening zone increased as a whole. The melting start temperature increased as a whole. The dripping temperature gradually increased, the melting-dripping zone increased quickly to a relatively high value of above 230°C, and the permeability index increased evidently, indicating the deterioration of melting-dripping index. The dripping difficulty increasing with the increase of Cr₂O₃ contents is in accordance with the observed Cr-multicarbides and Cr-carbides in the XRD pattern and the microscopic examination of the not-dripped and dripped melted iron and slag.