Abstract: This study focuses on reducing the iron content of graphite tailings through magnetic separation technology and investigating its effect on the properties of foamed ceramics. The results showed that the iron content in graphite tailings could be significantly reduced by magnetic separation processes. Specifically, the content of TFe₂O₃ in graphite tailings decreased from 6.37% to 2.18% when the content of −0.074 mm was 71.64%, the magnetic field induction was 0.8 T and the pulp density was 15%. Moreover, the appearance color of the foamed ceramics improved significantly, while the compressive strength increased from 7.2 MPa to 7.9 MPa, and the thermal conductivity increased from 0.33 W/(m·K) to 0.36 W/(m·K). After the magnetic separation process, the compressive strength of the foamed ceramics had been improved, and the thermal insulation performance had been reduced, but the overall performance remained largely unchanged.