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An induction furnace is an electrical furnace in which the heat is applied by induction heating of metal. Induction furnace capacities range from less than one kilogram to one hundred tons capacity and are used to melt iron and steel, copper, aluminum and precious metals.

The advantage of the induction furnace is a clean, energy-efficient and well-controllable melting process compared to most other means of metal melting. Most modern foundries use this type of furnace, and now also more iron foundries are replacing cupolas with induction furnaces to melt cast iron, as the former emit lots of dust and other pollutants.

 Since no arc or combustion is used, the temperature of the material is no higher than required to melt it; this can prevent loss of valuable alloying elements. The one major drawback to induction furnace usage in a foundry is the lack of refining capacity; charge materials must be clean of oxidation products and of a known composition and some alloying elements may be lost due to oxidation (and must be re-added to the melt).