The mechanism of activation of silica‐supported iron catalysts for Fischer–Tropsch synthesis was investigated in syngas or carbon monoxide under transient and isothermal conditions using the in situ magnetic method. The catalyst activation proceeds in two steps and involves reduction of hematite into magnetite and magnetite carbidisation into Hägg carbide. Smaller supported iron particles exhibit higher rates of hematite reduction and magnetite carbidisation than the larger counterparts. The reduction of hematite to magnetite proceeds with similar rates in syngas and pure carbon monoxide, while magnetite can be carbidised more rapidly in carbon monoxide. The concentration of iron carbide was approximately 3 times higher after activation in CO relative to the activation in syngas.