To provide a facility and method for producing reduced iron powder which efficiently performs finish reduction processing of crude iron powder such as rough-reduced iron powder and atomized iron powder.

The facility for producing reduced iron powder includes: a hopper for storing and supplying the crude iron powder such as rough-reduced iron powder and atomized iron powder; and a continuous movable bed furnace for applying at least one finish reduction processing of decarburization, deoxidation and denitrification to the crude iron powder. In the facility for producing reduced iron powder, a heating pipe through which a heating medium gas can circulate, and a straightening plate having an isosceles triangle shape with a base angle of 45° or more are provided in a position inside the hopper upper than the position of a supply port part of the hopper, wherein the supply port part of the hopper is a part having the same cross-sectional shape as a supply port positioned at a lower end of the hopper.