Abstract: Described are some key technical performances of a billet rotary hearth furnace in a domestic plant and some problems occurred in practical operation such as high billet oxidation burning loss and high energy consumption. The major influential factors of the problems are found out with the help of thermo technical test and technical analysis. The problems have been solved after taking a lot of measures such as checking the temperature thermocouple accuracy in furnace,modifying the combustion system and revising the heating schedule of the furnace,which not only reduces the billet oxidation burning loss and also decreases the energy consumption with remarkable economic benefits.