The invention provides a ferronickel electric furnace with a magnesium-carbon composite furnace lining. The electric furnace comprises a furnace bottom and a furnace wall, wherein an iron notch and aslag notch are formed on the furnace wall, a graphite ramming mass is arranged on the furnace wall close to the furnace shell, and graphite bricks are arranged close to the graphite ramming mass on ahot surface of the furnace wall. The electric furnace is advantaged in that a slag shell can be formed on the furnace wall graphite brick hot surface of the ferronickel electric furnace to prevent molten iron from eroding and damaging the furnace wall, brick joints are reduced by adopting large masonry, and the molten iron is prevented from eroding the furnace wall along the brick joints, the magnesia carbon bricks are adopted in the upper and lower circumferential areas of the iron notch, so molten iron corrosion resistance of the furnace lining is improved, and defects of easy expansion andeasy peeling of magnesia bricks are overcome; the service life of the ferronickel electric furnace is prolonged to 5-10 years or even longer from original 2-3 years, the overall service life of the furnace lining is greatly prolonged, moreover, maintenance cost is reduced, production efficiency is improved, and economic benefits are remarkable.