MgFe2O4 formation, grain growth in Fe2O3, Fe solid-solution limit in MgO for MgO-Fe2O3 mixture were studied by means of investigating the distribution of phases and compositions in reaction area between MgO and Fe2O3. The reaction area at equlibrium was composed with MgO-FexO matrix and MgFe2O4 precipitation, MgFe2O4 was formed by precipitating from MgO-FexO matrix dependent on oxygen partial pressure. Fe contents was exponentially decreased with diffusion distance in MgO single crystal, and thus Fe solid-solution limitation in MgO was about 4mol%. The grain growth rate in Fe2O3 base was increased with Mg contents diffused from MgO single crystal.