The invention discloses a method for making iron by melting and reducing as well as top blowing oxygen, comprising the following steps: an oxygen blow gun is inserted into a furnace from the center of the top of the furnace, the head part of the blow gun is immersed inside a clinker layer of a melting bath, fuel and air as well as enriched oxygen needed in the melting technique are sprayed into the melting bath from the blow gun, charging materials such as iron ore powder and a fusing agent are added from a feeding inlet at top of the furnace; under the action of high speed air flow sprayed from the blow gun, the melting bath is in a state of vigorous agitation, the flue gas in the method for making iron by melting and reducing as well as top blowing oxygen is sent to the subsequence process after exchanging heat with an afterheat boiler. The method for making iron by melting and reducing as well as top blowing oxygen adopts the immersing type oxygen enriched top blowing melting bath melting technique. The furnace body has a vertical cylindrical shape and an inside lining is a refractory material lining. The materials are melted rapidly and have physical and chemical reaction intensively under the action of high temperature and high turbulent fluid. The oxygen enriched top blowing technique is adopted; and the reaction temperature is higher than 1,450 DEG C, the reaction speedis high, the reaction time is short and the production efficiency is greatly improved. The technical technology has flexible reaction speed and lowers the investment cost.