The functional refractories used in steel casting operations are usually made up of alumina‐carbon compositions having graphite as the major source of carbon. In recent times, to reduce the carbon content and to enhance the performance by designing microstructure at nano‐sized level, several nano carbon sources and organic binders are introduced to traditional carbon‐based refractories. The homogenous distribution of nano carbon sources within the refractory composition is important to get the advantages of its use. In the present work, nanocarbon black is used along with graphite in the alumina‐carbon system. Three different mixing procedures are followed and how mixing effects the physical and mechanical properties is evaluated. The mixing order with proper nanocarbon distribution throughout the batch composition provided significant improvement in the properties. The microstructural analysis and in situ phase developments in the samples at different temperatures are also studied.