Method and apparatus for processing reduced iron in which granular iron oxide charged into a vertical furnace is reduced by a reducing gas comprising mainly carbon monoxide and hydrogen, a substantial portion of the waste gas generated in the reduction process being regenerated in a recirculating system. The reduced iron which has been reduced in the vertical furnace is continuously discharged at a temperature above 500.degree. C under isolation from the exterior atmosphere and is received in a plurality of air tight, sealable component adjusting receptacles. The reduced iron received in the receptacles is subjected to component adjustment at a temperature ranging from 700.degree. to 1100.degree. C by using the regenerated reducing gas and, thereafter, it is discharged from the receptacles under isolation from the exterior atmosphere so as to be received in air tight sealable cooling receptacles thereby cooling the same to a temperature lower than 100.degree. C, the reduced iron being thereafter discharged from the receptacles.