The invention relates the dysprosium-iron alloy technology with fused salt electrolysis process and device, belonging to rare-earth products preparing field. The method comprises the following steps: at high temperature, dysprosium oxide melting at fluoride, dysprosium oxide beginning ionizing; at the condition of 95V/M direct current field, separating out Dy3+ on the surface of iron cathode, deacidizing Dy3+ to Dy, and alloying Dy and Fe to form Dy-Fe. O2- is oxygenated to O2 on the surface of graphite cathode, and it reacts with carbite to form CO2. The melting point of dysprosium-iron (20úÑFe) is 1046Deg.C, and the melting point of Dy is 1407Deg.C, so the electrolyzation is carried out at 1050Deg.C. The invention has the advantages of low investment, low cost, simple technology, continuous production and low impurity content.