Biomass (cellulose, lignin and refuse) liquefaction has potential for providing useful liquid and gaseous fuel. The liquefaction biomass process can be converted directly to gasoline like hydrocarbon via two stage processes of high pressure liquefaction in the presence of carbon monoxide and aqueous alkali followed by catalytic hydro deoxygenation using commercial available catalyst. The laboratory scale liquefaction reaction and important factors which bring about the liquefaction of biomass are (a) different types of catalysts (b) different type of reducing gases (c) temperature (d) pressure (e) solvent.