Olivine is used extensively in iron-pellet production as an additive in LKAB blast furnace pellets, in order to improve the high temperature properties of the finished product during reduction. As the contribution of olivine into the process depends on the available surface area, the present study was designed to find out the effect of olivine and its fineness on the oxidation-sintering and subsequent dissociation of olivine in iron ore agglomerates. Agglomerates were exposed to different experimental conditions to study the effect of olivine on the behavior of magnetite and hematite at high temperatures. Olivine particles were found to react significantly only above 1 000°C. Porosity of the final product was found to depend largely on olivine fineness. The finer the olivine the lower the porosity of the final product. It is found also that irrespective of the starting iron oxide the ratio between hematite and spinel phase was the same after heating in air. Olivine fineness affects significantly the rate of hematite dissociation, the finer the olivine the higher the dissociation rate. Upon cooling the weight lost due to the dissociation was again regained