Abstract: The present invention provides an improved method for solvent liquefaction of biomass to produce liquid products such as transportation fuel. The method uses a novel solvent combination that promotes liquefaction relatively quickly, and it reduces the need to transport large amounts of hydrogen or hydrogen-carrying solvents. It operates at lower pressure than previous methods, does not require a catalyst or hydrogen gas or CO input, and provides very high conversion of biomass into a bio-oil that can be further processed in a petroleum refinery. It also beneficially provides a way to recycle a portion of the crude liquefaction product for use as part of the solvent combination for the biomass liquefaction reaction.