The reduction of Fe2O3 with hydrogen was studied. The thermodynamic analysis of the process implied that temperature-programmed reduction of the oxide should proceed in three steps, i.e. Fe2O3 -> Fe3O4 -> "FeO" -> Fe, at X-H2O/X-H2 ratio over 0.35, but in two steps, i.e. Fe2O3 -> Fe3O4 -> Fe, below that value. The idea was verified by TPR and XRD studies. Generally, the examinations confirmed the suggestions. The reduction is three-step reaction at high X-H2O/X-H2 ratio, but two-step reaction at low that ratio. Additionally, it was revealed that at extremely low X-H2O/X-H2 ratio the TP reduction is a one-step reaction, i.e. Fe2O3 -> Fe. (C) 2010 Elsevier B.V. All rights reserved.