Degari coal was liquefied in a micro reactor in benzene Yields of liquefied products as a function of operating conditions were calculated. Liquefied was performed under varying conditions of temperature, hydrogen pressure, residence time , coal/solvent ratio and coal particle size. Maximum conversion of the coal understudy to liquid product has been observed at temperature of 400cC, residence time of 1 hour, hydrogen pressure (cold) of 15kg/cm3, coal/solvent ratio of 1:2 and coal particle size of 250-212 um. Benzene proved to be effective solvent for obtaining reasonable yields of liquefied products.