Smelting reduction process technology is progressing rapidly, and research to understand the reduction of FeO in molten slag and the associated foaming behaviour has gained importance. The present paper reports experimental data on the reduction of FeO in molten slag generated in a 30 kW capacity induction furnace. The influence of FeO content in the slag and temperature on the foaming and kinetics is discussed. The foaming index, a parameter describing the travel time of gas in the reactor, is shown to decrease with an increase in the superficial gas velocity. The quantitative dependence of the foaming index on slag properties viscosity, surface tension and density has been studied. The data have also been analysed to give an estimation of the activation energy for the reduction reaction. The reduction reaction, initiated by direct slag–graphite contact, produces CO gas, which spreads into the molten slag bath causing foaming of the slag; further reduction of FeO proceeds mostly via indirect reduction. The rate of reduction is found to depend directly on the initial FeO content. An increase in temperature increases the rate of reduction, which has an activation energy of 118 kJ mol−1 of FeO. The results indicate that transport of FeO in the liquid phase is the rate controlling step. The major findings are in agreement with those reported by earlier investigators.