A method of treating a coal-derived liquid byproduct from a coal gasification process includes subjecting the coal-derived liquid to a vacuum distillation process, thereby separating the coal-derived liquid into condensed gas and coal-derived liquid bottoms. The coal-derived liquid bottoms are mixed with a bottoms solvent capable of dissolving the coal-derived liquid bottoms. The solvent/bottoms mixture is introduced along with a linear chain hydrocarbon solvent into a liquid extractor. The Raffinate is separated from the solvent for the coal-derived liquid/bottoms mixture, thereby producing in a heavy extract. The condensed gas is subjected to atmospheric distillation producing a bottoms fraction and another condensed fraction. The bottoms fraction may be used as fuel or for diesel fuel production. The condensed fraction is extracted with a linear hydrocarbon solvent in an extractor to produce light neutral oil and a Raffinate which is a cresylic acid feed stock.