A process for converting oxygenated feedstock, such as methanol, dimethyl ether or the like, to liquid hydrocarbons.In the primary catalyst stage the feedstock is contacted with zeolite catalyst to produce C.sub.2 -C.sub.4 olefins and C.sub.5.sup.+ hydrocarbons.In a secondary catalytic stage with oligomerization catalyst comprising medium-pore shape selective acidic zeolite at increased pressure converts C.sub.3.sup.+ olefins to gasoline and/or distillate liquids.The improvement is a technique for recovering lower alkene for recycle to the primary catalytic stage.