To overcome the disadvantage of MgO-CaO refractories, as the poor hydration resistance, MgO coating on the MgO-CaO clinker was fabricated by carbothermal reduction MgO with carbon as reduction agent and then the oxidation of Mg vapor. Effect of processing parameters (such as carbon source, reaction temperature and holding time) on the hydration resistance of MgO-CaO clinkers were investigated by hydration resistance test and SEM. The results indicated that the hydration resistance of treated MgO-CaO clinkers was improved when carbon black was used as reduction agent due to easy reaction with MgO than the graphite and coke. The high reaction temperature among 1450~1600°C and prolonged holding time within 4 h resulted in improvement of the hydration resistance of treated MgO-CaO clinker. Deposition mechanism of MgO coating on the MgO-CaO clinker was discussed.