Coprocessing coal with waste oil can achieve the dual purpose of recycling waste oil and liquefying coal economically. Waste oil is primarily paraffinic and is a poor hydrogen donor solvent but contains dispersant additives which could help improve dispersion of the coal particles and the catalysts during liquefaction. The initial coprocessing studies were conducted using 10% coal in tubing bomb reactors and a jet-loop reactor system developed at Auburn university. Coal conversions in excess of 85% were obtained during coprocessing with selectivity of over 80% to oils. The use of iron-based catalyst precursors and a traditional hydrogen donor solvent such as tetralin with waste oil did not have a significant effect on conversion and selectivity during coprocessing. However, the sulfur removal and the ash removal from the waste oil increased. This study indicates that coprocessing coal with waste oil is beneficial, and an extensive study is under way at present.