China needs to independently develop indirect coal-to-liquids(CTL) technology for commercialization, which can relieve the tense situation of oil supply and ensure the economic sustainable development. Currently, China has successfully run CTL demonstration plant and achieved the industrially proven technology of Fischer-Tropsch catalyst and synthesis reactor, and has been designing and setting up million ton scale CTL commercial plant. The paper briefly introduces the progress of indirect CTL technology over the world, reviews the research progress from basic research to engineering technology in China's coal indirect liquefaction process, including Fischer-Tropsch synthesis mechanism, catalyst preparation, reaction kinetics, industrial reactor design, system process integration and synfuels processing, highlights the key basic research and engineering problems for the construction of CTL industry with an outlook for the future, and puts forward the challenges and countermeasures in China.