The invention provides a method for producing sponge iron by a rotary hearth furnace. The method is characterized in that an oxygen-enriched combustion technology is adopted to ensure that the oxygen enrichment rate of combustion air is between 23 and 32 percent. In the method, raw materials for production can be recovered iron-containing zinc-containing dust of steel works, so that the method is applicable to the treatment of the recovered iron-containing zinc-containing dust of the steel works and is favorable for environmental protection and waste utilization. Through the method, the combustion temperature is raised, the internal temperature of the furnace is raised and the reduction rate of the sponge iron is improved, the reoxygenation probability of the sponge iron is reduced, and the productivity is improved. The oxygen-enriched combustion technology is adopted, so the required quantity of the combustion air is reduced and the discharge amount of flue gas is reduced, so that the heat loss of flue gas emission is reduced and the consumption of fuel is reduced. Subsequent dust removal by flue gas and useful dust recovery efficiencies are improved, the type and specification of equipment are also correspondingly reduced, and investment economy is improved.