Reduction of iron ore fines by coal fines in packed and fluidized beds has been studied. The investigation includes study of the kinetic aspects of reduction, carbon and sulfur content of the direct reduced iron (DRI) produced, and metallography of the products. For both processes, the kinetic data fit the first-order reaction model. Reduction in a fluidized bed is much faster than in a packed bed system. In both cases, DRI contains a substantial amount of free carbon at the initial stages of reduction. At the later stages of reduction, the carbon present in the DRI is mainly in the combined state. For identical temperatures and particle sizes, reaction in fluidized bed is much faster compared to that in a packed bed. At any particular degree of reduction, sulfur content in DRI samples produced by fluidized bed reduction is always more than that of DRI samples produced by packed bed reduction. Scanning electron microscopy (SEM) micrographs reveal that metallic whiskers formed during reduction in packed beds only. These whiskers become more prominent at higher temperatures and longer times.