To address the challenges in recycling red mud, a massive hazardous solid waste from the alumina industry, this work proposes an innovative and clean hybrid process combining hydrogen reduction and electric arc smelting for the efficient recovery of iron. Using Bayer-process red mud as the raw material, the effects of reduction temperature (ranging from 500 to 1100℃) on the phase transformation of iron oxides and the metallization rate under a hydrogen atmosphere were systematically investigated. The reduction intermediates and final products were characterized using X-ray diffraction (XRD), scanning electron microscopy (SEM), energy-dispersive spectroscopy (EDS), and thermogravimetric-differential thermal analysis (TG-DSC). The results indicated that the hydrogen reduction of Fe2O3 in red mud followed a stepwise pathway: Fe2O3→Fe3O4→Fe. The reduction of Fe3O4 to metallic iron was identified as the dominant endothermic reaction, with its peak reaction rate occurring at approximately 760℃. Reduction temperature was found to be the key factor governing the metallization rate. After reduction at 1100℃ for 2 hours, the metallic iron content reached 42.9wt%, corresponding to a metallization rate of 91.5%. Microstructural observations revealed that metallic iron particles underwent significant sintering and coalescence at 1100℃. Surface and grain boundary diffusion led to the formation of a continuous and porous iron network, which represented a typical characteristic of solid-state sintering at the intermediate stage. This interconnected iron structure greatly shortened the diffusion distance required for the coalescence of iron droplets in the subsequent melting step. Electric arc smelting of the reduced product at 1800℃ successfully yielded a remelted iron product with a purity of up to 98.000wt%, demonstrating efficient iron-slag separation. This work provides a green and efficient technical route for large-scale iron recovery from red mud, with potential value for industrial solid waste recycling and low-carbon metallurgy.