Abstract The on‐site industrial application of hydratable alumina (HA)‐bonded castables is inhibited by the high hydration rate of HA. In this study, the hydration behavior of HA co‐ground with sheetlike Mg–Al hydrotalcite (MAT) is investigated. The properties of castables bonded with MAT‐bearing HA are systematically assessed. The hydration rate of HA co‐ground MAT decreases as this allows MAT sheets to be effectively inserted into the microcracks of HA particles during grinding, thus decreasing the direct contact area between HA and water. The strength of MAT‐bearing castables (0.5 and 1 wt%) fired at 800°C improved slightly owning to the generation of magnesia–alumina spinel. The mechanical strength of castables fired at 1100 and 1550°C decreased as the MAT content increased owing to an increase in porosity. Based on an analysis of the hydration behavior of HA and the properties of HA‐bonded castables, the optimal MAT/HA weight ratio is approximately 1/10.