To produce low calorific value gas, Australian coal has been gasified with air and steam in a fluidized bed reactor (0.1 m-I.D x 1.6 m-high) at atmospheric pressure. The effects of fluidizing gas velocity (2-5 U-f/U-mf), reaction temperature (750-900 degreesC, air/coal ratio (1.6-3.2), and steam/coal ratio (0.63-1.26) on gas composition, gas yield, gas calorific value of the product gas and carbon conversion have been determined. The calorific value and. yield of the product gas, cold gas efficiency, and carbon conversion increase with increasing fluidization gas velocity and reaction temperature. With increasing air/coal ratio, carbon conversion, cold gas efficiency and yield of the product gas increase, but the calorific value of the product gas decreases. When steam/coal ratio is increased, cold gas efficiency, yield and calorific value of the product gas increase, but carbon conversion is little changed. Unburned carbon fraction of cyclone fine decreases with increasing fluidization gas velocity, reaction temperature and air/coal ratio, but is nearly constant with increasing steam/coal ratio. Overall carbon conversion decreases with increasing fluidization velocity and air/coal ratio, but increases with increasing reaction temperature. The particle entrainment rate increases with increasing fluidization velocity, but decreases with. increasing reaction temperature.