Abstract: An improved process for the hydroconversion of coal comprising pretreating coal in an aqeuous carbon monoxide-containing environment, followed by extracting a soluble hydrocarbon material from the coal, and subsequently hydroconverting the extracted material in a hydroconversion reactor with a high catalyst loading to obtain a nearly finished product with low heteroatom levels. The extracted material consists of a relatively hydrogen-rich material which is readily converted to valuable liquid products in high yield. The residue from the extraction stage is relatively hydrogen deficient material which can be gasified to produce hydrogen and carbon monoxide for the hydroconversion and pretreatment stages, respectively.