The present invention provides a method of producing metallic iron nuggets with a high yield and good productivity, and more particularly a method which can produce metallic iron nuggets which have a high Fe purity and are excellent in transporting and handling due to a large grain diameter with a high yield and good productivity, when they are produced by reducing and melting raw material containing iron oxide such as iron ore and carbonaceous reducing agent such as coke. The method of producing metallic iron nuggets comprises steps of: heating raw material containing carbonaceous reducing agent and iron oxide-containing material in a reducing/melting furnace, reducing iron oxide in the raw material, and then heating and melting the metallic iron produced by the reduction and simultaneously making it coalesce while separating the metallic iron nuggets from slag components characterized in that the fixed carbon content ratio as the carbonaceous reducing agent is at least 73% and the volatile matter content in the raw material is not more than 3.9% are used, and the mixing content of carbonaceous reducing agent is restrained to be not more than 45% in relation to the iron oxide components, which is contained in the iron oxide-containing material of the raw material.