Abstract: A process for simultaneously improving the fuel properties of coal and oil is described.In the first step of this process, two fluidized beds are provided. The first fluidized bed has a fluidized density of from about 20 to about 50 pounds per cubic foot and is at a temperature of from about 850 to about 1,000 degrees Fahrenheit. The second fluidized bed is similar to the first but is at a slightly higher temperature.Coal and oil are fed into the first fluidized bed. A portion of the coal/oil mixture from the first bed is fed to the second bed, wherein it is combusted. Combustion product from the second bed is fed to the first bed.