Improved coal liquefaction was reinvestigated for the current two-stage process on the basis of the associated molecular nature of coal. Since a significant portion of coal molecules are physically associated as pointed in our recent paper, physical dissolution should be considered. The step-wise, high-temperature soaking is a simple and effective method for coal dissolution. Larger dissolution makes liquefaction severity lower. Broad molecular mass distribution in the associated coal was another important factor. The selective reaction of fractions with high molecular weight isolated after the high-temperature soaking makes gas yield lower. Tests using an autoclave by the concept shown in Figure 5 enabled to more oil and 15-20% less gas yields. It is expected that the procedure will result in great cost reduction in coal liquefaction.