Lignite is a kind of coal that has high moisture content and needs to be dried before being utilized. In this article, a Chinese lignite was dried in air at 120-180 C and the changes in its physical and chemical structures after drying were investigated. The results showed that the pore volume and specific surface area of the lignite decreased after drying. Some of the methylene and methyl groups were oxidized by the oxygen in the drying air, resulting in an increase in oxygen functional groups. The combustion characteristics of the dried coals and parent coal (dry basis) were studied via thermogravimetric analysis. The total volatile yields of the dried coals increased compared to the parent coal. The burnout temperatures of the dried coals were higher than the parent coal, whereas the ignition temperatures stayed almost unchanged. An entrained flow system was set up to study the release of nitrogenous gas products during rapid pyrolysis and combustion. The HCN yields of the dried coals during pyrolysis were higher than that of the parent coal, and a similar trend was found for the NO yield during combustion. The mechanism changes of combustion and pollutant emission characteristics were discussed according to the results of the physical and chemical structure analyses.