Various kinds of friction materials were manufactured by adding 10%, 20%, and 30% of reduced iron, respectively, which has been obtained during the reduction process of blast furnace sludge extracted from the blast furnace, and its iron oxide, instead of existing barium sulfate(BaSO4) among the components of automobile brake friction materials. Fundamental physical property test and friction performance test, etc., using a brake dynamometer were carried out against these friction materials. Furthermore, when the expensive filling material, BaSO4 was substituted by reduced iron and added to the friction material, the added content of reduced iron for an excellent friction characteristic considering the heat emission temperature, wear, etc., was 10%. In the fundamental physical property test, as the added content of blast furnace sludge or reduced iron increased, and as the content increased, the shear strength and bonding strength of friction materials decreased, but both of them indicated sufficient strengths to be applied to a friction material. Even in the frictional performance test using a brake dynamometer, as the added content of blast furnace sludge or reduced iron increased, the friction coefficient reacted insensibly to brake deceleration, and its stability was improved.