The effect of pre-oxidation degree of Panzhihua ilmenite concentrate on the gaseous reduction by carbon monoxide was investigated. The raw ilmenite concentrates were pre-oxidized at 600, 700, 800, 900, and 1000 °C for 2 h, respectively. The phase change, FeO content, and morphology after the oxidation at various temperatures were characterized. The oxidation degree was calculated according to the change of FeO content. Thermogravimetry was performed on the oxidized ilmenite concentrate samples (oxidized at 600, 800, and 1000 °C) at 850, 900, and 950 °C, respectively. The results show that the pre-oxidation of ilmenite concentrate can accelerate the reduction process: the higher pre-oxidation degree, the faster reduction rate. The high pre-oxidation degree of ilmenite concentrate is beneficial to accelerate the subsequent reduction process in two ways. Three stages of the reduction process were divided via the first derivatives of reduction degree, and the reduction mechanism and apparent activation energy were discussed subsequently.