Based on the analysis of heat transfer mechanics, physical and chemical change of pellet drying and preheating process in grate, the mathematical model is established and solved by three-diagonal matrix algorithm. With Visual Basic 6.0 a simulation software is developed. The model is verified by measurements at a domestic pellet plant, and the temperature distribution of pellet bed is gained. Meanwhile, the influence of different operation parameters on the pellet thermal process is studied. The results can be taken as a basis of practical production control and the grate optimizing design. © Shanghai Jiaotong University and Springer-Verlag Berlin Heidelberg 2011.