The hydrogenation of preasphaltene (PA), from Chinese Xiaolongtan lignite liquefied heavy product, was investigated with hydrogen storage materials in a batch autoclave. The effects of reaction conditions such as hydrogen storage materials and temperature on the yields of gas+oil, asphaltene, char and the conversions of preasphaltene were discussed. Preliminary studies indicate that increasing temperature not only improves hydrogen donor performance of hydrogen storage materials but also enhances conversion of feedstock PA and gas+oil yield. The conversion of PA and the yield gas+oil get to 72.02% and 41.46%, respectively, under 5% MgH2, 5MPa initial hydrogen pressure, temperature 420°C and reaction time 30min. Meanwhile MgH2 is stronger than NaBH4 in hydrodeoxygenation of PA under the same conditions. Elemental and FTIR analyses were used to illustrate the structural characteristics of feedstock PA and remaining preasphaltene (RPA).