Molten iron is prepared by (1) providing iron oxide and a carbonaceous reducing agent, (2) preparing a shaped product from the carbonaceous reducing agent and the iron oxide, (3) preparing solid reduced iron from the shaped product, wherein the solid reduced iron has a metallization of at least 60%, a specific gravity of at least 1.7, and a carbon content of at least 50% of the theoretical amount required for reducing the iron oxide remaining in the solid reduced iron, and, (4) before substantial cooling occurs, heating the solid reduced iron in an arc heating-type melting furnace at a high temperature. The molten iron can be prepared efficiently from iron ores of relatively low iron content without causing erosion of refractories, at high energy and high reduction efficiencies, and by a simple operation in a simple facility.