Granulation of the iron ore blend and the additives is the foremost step in the agglomeration of iron ore fines to achieve a permeable bed during sintering, which is crucial for sinter productivity. This study investigated the granulation of four types of blends to determine the impact of granulation on bed permeability. The blends were granulated in a rotating drum at various moisture contents and their JPU permeability was measured at each moisture content in a permeability pot (diameter 95 mm and height 500 mm) at various flow rates. Several independent experiments were carried out to investigate the changes in permeability when mixtures of different particle size range (-1 mm and +1 mm) were introduced into a packed bed with a larger particle size range (-6.3 mm to +4.0 mm). The results revealed that the addition of particles in the -1 mm size range had a more pronounced negative impact on permeability compared to particles in the +1 mm size range. This can be attributed to the relatively higher energy losses (mainly inertial) associated with the presence of -1 mm particles in the mixture. The findings were used to quantify the granulation process based on the -1 mm particle size fraction in the granulated mix and their utilisation (denoted by UI-1 mm). For achieving optimal permeability in a specific blend, it was found that a UI-1 mm (utility index of -1 mm particle size) ranging from 0.82 to 0.92 was required. However, exceeding a UI-1 mm value of 0.95 resulted in weaker granules prone to deformation and led to decreased bed permeability. The study also showed that the UI-1 mm was highly dependent on the water addition per kg of -1 mm in dry feed and suggested adding ~80 to 110 mL of water per kg of -1 mm in dry feed to attain the best possible permeability. Additionally, the research proposed a mechanism involving the melting of granules at high temperatures and highlighted the influence of -1 mm particles on bed permeability during the sintering process.