Abstract: Based on the analysis of some kinds of low oxygen combustion, a low oxygen burner with self-circulation of flue gas was developed with contracted/dilated air channels. The Fluent software was used for numerical simulation of the burner. The results show that the negative pressure at the throat is the driving force of fume entrainment, and the volume of fume entrainment increases dramatically with the decrease of throat area. Because of the increase of fume entrainment, the oxygen concentration in the furnace decreases, the high-temperature zone of the flame moves to the burner, and the length of the flame also becomes short. At last, the low oxygen burner with self-circulation of flue gas was applied to a melting holding furnace, and the anticipated effect was achieved.