In view of the status quo of huge reserves of low-grade titaniferous polymetallic ore that could not use directly, a gradient magnetic separation-vortex reduction method for preparation of Ti-Si-Fe alloy was proposed. The low-grade titaniferous polymetallic ore was processed by dry flux weakening magnetic separation to obtain the magnet powder products. And the medium magnetic titanium concentrate was obtained by medium magnetic separation. The medium magnetic titanium concentrate was used to prepara the Ti-Si-Fe alloy by vortex smelting reduction method. The results showed that the reduction temperature of silica and carbon could be reduced effectively by the generated iron. In the process of direct carbothermal reduction of titanium dioxide, the restrictive link was the reduction of low-valence titanium oxide (TiO→Ti). The generated silicon and iron could reduce the carbothermal reduction temperature of titanium dioxide to realize the successful preparation of Ti-Si-Fe alloy.