Extensive separation tests were carried out on a 6″ dense medium cyclone loop with the use of density tracers to study the effects of medium stability and rheology on the separation of fine particles. The medium properties were modified by changing the magnetic particle size and medium density. Four magnetite samples with RRB size modulus d 63.2 ranging from 4.7 to 33 μm were used, and the medium densities were varied from 1.2 to 1.7 s.g. It was found that, while the separation efficiency and cutpoint shift for coarse particles (>2.0 mm) were mainly determined by the medium stability, the separation performance of fine particles (<0.5 mm) was more sensitive to the change in medium rheology.