Micron, sub-micron and nanometer sized MgO•Al2O3 ultra-fine powders were prepared by gel precipitation, solid-phrase synthesis, sol-gel and flame throwing pyrogenation methods. XRD analysis shows that the all of the ultra-fine powder is pure with a single MgO•Al2O3 spinel phase. The size is measured by laser granularity analyzer and the average size is 60, 505 and 1780 nm with quite uniform distribution. MgO•Al2O3 spinel powder with different granularity were sprayed into molten medium carbon steel in MgO crucible and MoSi2 furnace at 1873 K. Quantitative microscopic examination shows that big particle inclusions are reduced and small particle inclusions increased, and the average size is reduced. Data comparison from spraying different size powders shows that spraying MgO•Al2O3 of nanometer tends to cause more small inclusions. The sprayed steel samples were rolled and heat treated for the mechanical properties tests, which shows spraying nanometer MgO•Al2O3 is the best way to improve mechanical property.