When sulfuric acid (H₂SO₄) reacts with magnesium oxide (MgO), it forms magnesium sulfate (MgSO₄) and water (H₂O). This is a neutralization reaction, where an acid reacts with a base to form salt and water.

Here's the balanced chemical equation:

H₂SO₄ + MgO → MgSO₄ + H₂O