Abstract: The China's energy situation of " rich coal,poor oil and little gas" determines that China will still be dominated by coal for a long time. Medium and low grade coal accounts for more than 50% of the total proven reserves of coal. In order to make full use of medium and low grade coal( such as lignite) resources of China effectively,the distribution characteristics and physical characteristics of lignite resources in China,as well as the technology of drying,dehydration,compression molding and low-temperature pyrolysis processing and utilization were analyzed in the paper. The research status of low-temperature pyrolysis technology of lignite was emphatically reviewed,and the widely used pyrolysis technology of solid heat carriers,and the gas heat carriers and gas-solid heat carriers were summarized. Moreover,the reactors,types of heat carrier,application,feedstock,production,and degree of industrialization of the typical upgrading lignite pyrolysis techniques at home and abroad were also compared. Furthermore,the key technology issues of lignite upgrading and utilization including products with low-added value,low tar yield,waste heat recovery,and dust treatment were pointed out. The prospect of lignite pyrolysis and classification refining technology in the future was also discussed. In addition,it was necessary to extend the product chain by improving the added value of tar and other pyrolysis products,co-pyrolysis with other materials,design and development of reactor,the higher utilization rate of oxygen and other elements in lignite through process adjustment,and large-scale development. Finally,the suggestions of comprehensive utilization of low rank coal lignite in the future were pointed out. The ignite pyrolysis technology and the existing coal gasification,liquefaction,MTO and MTP coal chemical technology should be integrated. A variety of high value-added clean fuels,chemical raw materials and heat energy,electric power are obtained by setting the appropriate product objectives and designing reasonable technology route.The lignite industry chain should be effectively extendyed to realize the classification and quality utilization of low-grade coal,and promote the structural adjustment and optimization and upgrading of China's coal industry.