In this study, the suitable process conditions for upgrading coal-derived oil for aerospace application have been explored. Shenhua coal direct liquefaction oil was used as the raw material. Due to the characteristics of high sulfur content, high oxygen content, and large unsaturation, a process of “alkali washing-hydrodesulfurization-hydrogenation saturation” was employed. Using the self-developed catalysts (NiMoW/Al₂O₃ and Pd/Al₂O₃), the optimal reaction conditions were determined to be 5 MPa and 300 ℃ for hydrodesulfurization, and 4 MPa and 210 ℃ for hydrosaturation. The as-prepared product oil possessed high density and high net heat value. The as-prepared fuel also exhibited high withstanding temperature of 550 ℃ and good thermal oxidation stability.