In this work, the reduction-oxidation two-step method was used for investigating the resource utilization of phosphogypsum. The influences of different decomposition conditions were investigated, including the reducing process and oxidizing process. The reductive organic sulphide in lignite reacted with CaSO 4 and improved the CaSO 4 decomposition rate. High Fe 2 (SO 4 ) 3 content and anhydrous air flow rate promoted the formation of Fe-Ca-Ox, decreasing the CaSO 4 decomposition rate. H 2 O derived from CH 4 reacted with lignite to consume the solid reducing agent. In the reducing process, CaSO 4 reacted with CH 4 and lignite to form CO, CO 2 , H 2 O, and CaS. In the oxidizing process, CaS was mainly oxidized into CaO, SO 2 , and element S. Through a two-step decomposition process (reduction with CH 4 and oxidation with air), the decomposition temperature of phosphogypsum decreases and the decomposition efficiency is improved. Meanwhile, the residual lignite was oxidized into CO and CO 2 . Therefore, it is meaningful and valuable.