The iron and steel industry involves processes that generate abundant waste heat resources. The energy utilization rate can be improved by using thermoelectric conversion technology to directly convert waste heat into electric energy through the Seebeck effect. In this study, a special waste heat recovery device, designed according to the production environment characteristics of blast furnace (BF) slag, is proposed. The heat transfer process between the BF slag and thermoelectric generator (TEG) is analyzed, and the heat source temperature field model is constructed. Based on the temperature distribution, the size of the TEG is determined. The heat transfer behavior of the thermoelectric module (TEM) is optimized using a non-contact heat collection mode and a water-cooling device, which improves the temperature gradient. A thermal conductive silicone grease is introduced as the thermal conductive layer to achieve uniform distribution of the hot end temperature and improve the heat transfer capacity of the collector plate. After design optimization, the temperature gradient of the TEM increased by 15.3 °C and 38 % on average. The experimental results show that a single TEM can generate about 3.084 J of electric energy. Using 70 kg of BF slag with an initial temperature of 600 °C, the TEG per unit installed area can generate about 1.23 kJ of electric energy in 1 h. This study provides an important foundation for research in thermoelectric conversion, utilization of BF slag waste heat and sustainable development of the iron and steel industry.