The properties of iron ore green pellets with varying additions of a surface-active flotation collector reagent (Atrac) were studied by small-scale balling. The compression strength and plasticity were measured with a semi-automatic measuring device and the pressure curves were saved and subjected to further mathematical treatment. The green pellet breakage was also filmed with a high-speed camera. Adding Atrac to the pellet feed seriously damaged the quality of green pellets, even in small dosages. This is because an increasing amount of air bubbles became so strongly attached on the particle surfaces that they could not be removed during compaction by balling. The adsorption of air in green pellets was seen as an increase in porosity and a decrease in the filling degree (proportion of pores filled with water). Both the wet and dry compression strength decreased. The air bubbles behaved in wet green pellets like large, plastic particles and the plasticity increased beyond an acceptable level. Breakage started inside the green pellets, along the air bubbles, and generated multi-breakage patterns in wet as well as dry green pellets. Green pellet breakage to crumbs instead of a few distinct segments, promotes the generation of dust and fines and leads to lower bed permeability in the pelletizing machine. The results show that the decrease in iron ore green pellet wet strength in the presence of surface-active agents is not fully described by the so called Rumpf equation, where surface tension and contact angle are used as variables to describe the capillary forces. The green pellet breakage in the presence of air bubbles took place by crack propagation along pore structures rather than through the loss of the capillary forces.