Fundamental research during the past decade has been focussed on understanding the role of viscous forces on agglomerate deformability and strength. Much of this work has been done on glass spheres using Newtonian liquids as a binder. In this work, we show the variations in plasticity and strength of magnetite iron ore green pellets with varying liquid saturations and binder dosages (viscosities). For this purpose, a new measuring instrument was built to analyze the green pellet wet compression strength, plastic deformation and breakage pattern. Industrial iron ore green pellets are over-saturated and a supporting "network" of viscous liquid is formed on the green pellet surface. At least half, probably more, of the total binding force appeared to be due to the cohesive force of the network. The other half (or less) of the total compression strength can be explained by the capillary force. Due to irregularities on green pellet surfaces, both fully developed concave pore openings and saturated areas are expected to be found at the same time. Wet green pellets started showing plastic behaviour as they became over-saturated. In over-saturated green pellets, an explosive increase in plasticity with increasing moisture content was seen, due to the contemporary increase in porosity. Plasticity is an important green pellet property in balling and should gain the status of a standard method in green pellet characterization. It is suggested that the control strategy for the balling circuits be based on plastic deformation and compression strength of green pellets instead of the rather inaccurate drop number. The results also point out the importance of knowing whether the balling process should be controlled by adjusting the moisture content (plasticity) or by adjusting the bentonite dosage (viscosity). These two operations are not interchangeable-even if they would compensate in growth rate, the green pellet properties would differ. A new green pellet growth mechanism is suggested, based on the measured over-saturation. Firstly, green pellet plasticity needs to exceed a minimum level to enable growth. This limiting plasticity defines the material-specific moisture content needed in balling. Secondly, it is suggested that the growth rate be controlled by the viscosity of the superficial water layer rather than by the mobility of the pore water.