A modified magnesium chloride hydrate was synthesised using ethanol and magnesium chloride hexahydrate as precursor materials, combined with magnesium oxide to create an enhanced binder. The effectiveness of this modified binder was evaluated through experimental testing on commonly used corundum refractories. Results showed a significant increase in compressive strength compared to a conventional magnesium chloride-based binder, along with superior resistance to hydration. Detailed characterisations revealed that the improved performance stemmed from enhanced adhesive properties and reduced water absorption capacity, attributed to the presence of ethanol. Ethanol molecules replaced water molecules in binding to magnesium ions, contributing to the binder's favorable characteristics. These findings underscore the potential of this modified binder as a superior alternative for binding applications in refractory materials, paving the way for further advancements in refractory binding technology.