The effect of the initial particle size of a coal on the resulting particle size of the reacted products was determined by Coulter Counter analysis of liquefaction products of Amax and Kentucky coals. Further studies of the effect in coal dissolution with different solvent/coal ratios with four different solvents (tetralin, LRO, creosote oil, naphthalene) were performed using different reaction times. Extensive studies with SRC residue ash and coal ash as possible liquefaction catalysts were done in hydrogenation, hydrodesulfurization, and solvent quality of the coal liquefaction process. In the presence of Co-Mo-Al as catalyst and tetralin as solvent the reactivity of demineralized coal by acid extraction and magnetic separation was found to be almost the same as the untreated coal. Mineral matter present in coal strongly interacted with the LRO solvent, enhancing both the dissolution and hydrogenation reactions, but not with the tetralin solvent. Coal minerals such as Fe, SRC residue ash and pyrite had moderate hydrodesulfurization activity using phenyl sulfide, but not with dibenzothiophene. Mathematical modeling of reaction kinetics in coal liquefaction with tetralin as the solvent was done by the Parameter Estimation Method.