The axial dispersion model is applied to the reactor-dissolver in the Solvent Refined Coal (SRC) liquefaction process. The effect of mixing in the two-phase vertical flow coal liquefaction system is examined. The parameters arising in the model, such as the axial dispersion coefficient for both liquid and gas phases, the mass transfer coefficient, and the gas phase holdup, are obtainable independently from literature correlations. Reaction rate expressions for the coal liquefaction, hydrogenation, and hydrodesulfurization reactions in the SRC reactor are obtained from laboratory studies. A numerical simulation for the Wilsonville SRC pilot plant is given. The effects of flow behavior and mass transfer on the extent of coal dissolution, hydrogen consumption, and hydrodesulfurization are illustrated. The results predicted from the proposed model are also compared to those experimentally measured in the Wilsonville pilot plant.