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Studying the hydro-liquefaction kinetics of lignite contributes to optimizing the mild liquefaction process for lignite. In this paper, the direct liquefaction performance of Shengli lignite (SL) was investigated using a H2/THN system with 4 MPa of initial pressure, and reaction kinetic models were established for the heating-up stage and the isothermal stage. The result showed that the liquefaction performance of the SL was excellent, with a conversion of 62.18% and an oil and gas (O + G) yield of 29.88% at 698.15 K. After one hour of reaction, the conversion and O + G yield were 94.61% and 76.78%, respectively. During the heating-up stage, the easily reactive part of the SL was 50.07%, and it was converted directly into oil, gas, asphaltene (AS), and preasphaltene (PA) simultaneously. There was no significant secondary hydrogenation conversion of the AS and PA products. During the isothermal stage, the hard-to-react part was predominantly converted into AS and PA, while the remaining easily reactive part continue to react completely. The conversion of AS and PA into oil and gas was a rate-controlling step during this stage. The amount of unreacted coal estimated using the model calculated in the isothermal stage was 2.98%, which was significantly consistent with the experimental value of 2.81%. [ABSTRACT FROM AUTHOR]