Direct liquefaction of Chinese Hami sub-bituminous coal was conducted with binary mixtures of hydrogen donor solvent tetralin (THN) and non-donor 1-methylnaphthalene (1-MN) or naphthalene (Nap.). Effects of solvent composition, temperature, atmosphere, and catalyst FeS2 on product distribution and hydrogen consumption were investigated at solvent/coal mass ratio of 2. The results show that oil yield increases from 47.70% to 59.95% with 1-MN/THN ratio changing from 2:1 to 1:2. Hydrogen donating ability of binary solvents increases with the rising ratio of THN. H-2 contributes noticeably positive effect on coal conversion in the case of liquefaction with insufficient hydrogen donor solvent. Oil yield obtained during direct coal liquefaction (DCL) with Nap./THN is 58.32%, which is 10.62% higher than that with 1-MN/THN at same solvent ratio of 2:1. This is owing to demethylation effect of 1-MN under liquefaction condition. 1-MN demethylation is induced by active hydrogen and coal radicals, and could consume noticeable hydrogen during DCL. This indicates that the amount of alkylarenes included in liquefaction mixed solvents should be limited, or sufficient hydrogen donor solvent is required to achieve high coal conversion.