To provide the refractory of an induction furnace which enables the extension of the life of the furnace and the stable operation.

An induction furnace, which is used for the fusion and/or refining of rear earth metal or metal containing rear earth metal, is of multilayer refractory structure, and the refractory for lining of the furnace is made in at least two-layer structure, and its working layer (the innermost part) is made of figurate refractory being manufactured by making at least its sidewall integrally of such material that cerium material of 74 micron or under is 5-50 wt.% and the rest is high alumina material of 75 wt.% or over in alumina content and/or a proper organic or inorganic deflocculant or hardener is added to alumina material and that they are kneaded, and applying heat treatment in a temperature range of 200°C-1000°C to it to put the porosity at 15% or under, and also the outermost part is made of dry amorphous refractory which has hot linear expansion property equivalent to or more than the inner member.