Recycling of iron and steelmaking dusts is a key issue in environmental protection efforts and to ensure efficient utilization. In this investigation, we developed a novel recovery process that uses a dispersed in-situ phase induced by an explosive reaction of composite balls of iron and steelmaking dusts. We designed and prepared composite balls for this function using a laboratory model batch-type balling disc (at 12 r/min) and optimized the feeding modes in 180-t and 260-t basic oxygen furnace (BOF) converters. The results indicate that feeding composite balls into BOF converters is an effective novel technology for recovering iron and steelmaking dusts. The period after hot metal charging and prior to the oxygen-blowing process is the most reasonable time to feed composite balls. Composite ball treatment is not appropriate for steel production with sulfur requirements lower than 80 ppm. The maximum composite ball feeding amount is 40 kg/t and the iron yield rate is better than 95%. Compared with the conventional recycling process of sludge and dust, this novel technology is more convenient and efficient, saving up to 309 RMB per ton of steel. Further investigation of this novel recycling technology is merited.