The invention relates to a method for preparing biphenyl through dibenzofuran hydrogenation, which belongs to the technical field of fine chemicals synthesis. A heated raw material liquid enters a circulatory catalyst bed layer under the drive of low-pressure hydrogen. After reaction in a lifting pipe is finished, a reaction product and a solvent enter a rectifying tower, the separated solvent is recycled, and the biphenyl is obtained at a tower bottom. Acatalyst enters a regenerator under the effect of gravity in a settler, and is regenerated through air, and the regenerated catalyst enters a reaction device, so that the aim of catalyst recirculation is achieved. The used catalyst is MoO3, Mo2C, MoP or Mo2N which has high activity on dibenzofuran hydrogenation and high selectivity on the biphenyl, the dibenzofuran conversion rate reaches 96 percent, the biphenyl selectivity reaches 99.3 percent, and the purity of the finally distillation separated product biphenyl reaches 99 percent. The catalyst provided by the invention has the characteristics of high activity, high selectivity, easiness in regeneration and the like, the catalyst is recycled, the process is simple and easy to implement, the production cost is reduced, and the method has a favorable industrial application prospect.