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The direct reduction of TiO₂ to low-oxygen titanium metal is achievable via Hydrogen Assisted Magnesiothermic Reduction (HAMR). To investigate and leverage the oxygen-scavenging properties of rare-earth dopant species on the HAMR process, Y-doped and undoped TiO₂ powders were synthesized and characterized. HAMR blends incorporating the synthesized TiO₂ were reduced under forming gas atmospheres. X-ray powder diffraction (XRD) and scanning electron microscope (SEM) characterization was performed prior to and following reduction. The TiO₂ powders were observed to be dense and nanocrystalline. Following reduction, more extensive development of intermediate HAMR phases was observed as a result of Y-doping. The microstructure/phase evolution of the HAMR reduction phases was observed to deviate from the expected for dense TiO₂ particles. Rapid restructuring of the TiO₂ particle interiors was attributed to increased bulk diffusion rates of nanocrystalline materials. Doped nanocrystalline TiO₂ powders were identified as potential alternative feedstocks for HAMR experiments. The byproduct MgO phase was observed to grow as a particle agglomerating network that is dense when formed at 750 °C and porous when formed at 900 °C.