In the recent years, pure cementite (Fe 3 C) is considered as a material for the production of high temperature usage pieces and an auxiliary material in electric arc furnaces (EAF). For this purpose, simultaneous thermal- mechanical activation (STMA) was performed on hematite- graphite mixtures with stoichiometric ratio of 1/1, 1.25/1 and 1.5/1 (stoichiometric amount of consumed carbon in hematite to cementite reaction) for 6 hours at 800, 850 and 900°C and BPR of 40:1. The microstructure of the sample which was milled at 800°C and carbon to hematite ratio of 1/1 was studied through light microscope, Scanning electron microscope (SEM) and energy dispersive spectroscopy (EDS). The results showed pearlite, proeutectoid cementite and activated free carbon content in the microstructure. Image analysis of the sample indicated more than 2.1%wt carbon content, which was approved by eutectic endothermic peak in thermal analysis (DSC). To dissolve the free carbon content in the microstructure of the sample, fractional melting (FM) process was performed on the sample at 1180°C for 25 min. in inert atmosphere. Microstructure of this sample showed more than 75%wt proeutectic cementite and 5.7%wt carbon content. Further studies were done on the FM samples which had higher stoichiometric ratio (1.25/1 and 1.5/1) and higher milling temperature (850°C and 900°C). Microstructure of these samples was surveyed through light microscope and color etching solutions, SEM and EDS. The image analysis results indicated that increasing stoichiometric ratio and milling temperature, increased the cementite in the structure. So that increasing the source of carbon led to cementite and vermicular graphite microstructure in the sample which was milled at 800°C with 1.5/1 stoichiometric ratio. While fragmentation and distribution of graphite particles in the sample which was milled at 900°C with 1.25/1 stoichiometric ratio, was the mechanism of cementite- graphite microstructure. According to the results, coupling of STMA/ FM process can be brought up as a new method for pure cementite production from hematite. Keywords: Iron carbide, Hematite, Graphite, Simultaneous Mechanical-thermal activation, Fractional Melting, Hot ball milling, Carbothermic reduction