Beypazari and Tuncbilek lignite were liquefied using two different catalyst methods physically mixing and impregnation. The liquefaction occurred under conditions of inert atmosphere and various process parameters. Solvent to coal ratio, pressure, catalyst type, catalyst concentration, temperature, and time were examined as process parameters. The most appropriate parameters for the total soluble products obtained by liquefaction of both lignites and for elemental analysis of preasphaltenes were determined as follows: 2/1 solvent to coal ratio; from 1.25 MPa to 2.50 MPa initial nitrogen pressure; Fe2O3 and Mo(CO)(6) as catalyst types; 3% as catalyst concentration; 400 degrees C as reaction temperature; and 60 min as reaction time. In general, fuel quality of both preasphaltene and total soluble products decreased as temperature increased above 400 degrees C and reaction time exceeded 60 min. The fuel quality of the preasphaltenes and the total soluble products obtained under the catalytic conditions and in the state of impregnation of catalyst onto coal is higher than under the noncatalytic conditions and in the state of physically mixing of catalyst.