Water-soluble iron sulfate/sulfur-catalyzed coal liquefaction using three kinds of hydrogen sources including syngas-water has been investigated. The liquefaction of Wandoan coal, an Australian subbituminous, with iron sulfate/sulfur as a catalyst precursor using syngas-water or carbon monoxide-water afforded higher coal conversions and oil yields than those using pressurized hydrogen gas. The pretreatment at relatively low temperature (200 degrees C) was indispensable to achieve the high coal conversion. Ln the two-staged liquefaction (400 degrees C, 60 min + 425 degrees C, 60 min), the use of syngas-water as a hydrogen source afforded higher coal conversion of 90.1% together with a high oil yield of 46.2% than those using pure hydrogen, and almost comparable to those using carbon monoxide-water, indicating the presence of synergistic effects of two hydrogen sources. At the early stage of the reaction, the contribution of carbon monoxide-water was predominant, whereas hydrogen gas significantly took effect at the latter stage. The XRD and XPS study revealed the formation of pyrrhotite, a possible active species, covered with a small amount of sulfate species.