An introduction such as reserves, mineralogy composition, ore texture, mineralogical characteristics was made to oolitic hematite with high phosphorus from west of Hubei China. Problems consisting in utilizing this kind of ore were analyzed. Traditional methods such as reverse flotation, high—intensity magnetic separation, magnetizing roasting—weakly magnetic separation, direct reduction acid leaching and microbiological leaching were discussed. Some suggestions and development trends such as reduction—magnetic separation, magnetic separation—selective agglomeration desliming—reverse flotation united flowsheet on utilization of oolitic hematite with high phosphorus are all presented.