High purity iron is defined as iron that has purity more than 99.9%. High purity iron-based materials have higher performance than traditional iron-based materials, such as lower ductile-to-brittle transition temperature and recrystallization temperature, higher corrosion resistance, higher maximum permeability, excellent conductivity and low temperature thermal conductivity, thus showing promising applications in aerospace, electronics-information, electric power and military industries etc. However, China currently has to import most of the high purity iron used in its industry and scientific research institute, although China is the world’s largest producer and consumer of industrial iron, due to the lack of economic and efficient preparation technology of high purity iron. In this article, four typical methods for the preparation of high purity iron in the present world, direct reduction-smelting separation refining method, electrolysis method, pyrometallurgy method and hydrometallurgy-pyrometallurgy combined method, are reviewed and summarized. The development processes of researches in high purity iron preparation technology between China and developed countries such as Japan, Europe and the U.S. are compared. The relationship between the purity of iron and its current market price is illustrated. The possible negative effects of impurity elements on alloy properties are also indicated. The developing trend of high purity iron at home and abroad is discussed. At last, the industrial production of high purity iron in China is prospected from aspects of the research and development of preparation technology, the establishment of industrial standards, the development of application market and the development of related industries.