Coal was dried and simultaneously reduced in size in a spouted bed using air at different temperatures as the spouting fluid and either glass beads as a dynamic grinding aid or a specially designed metal insert as a static grinding aid. Both semi-batch and continuous operations were carried out, the balanced feed and product-discharge rates in the latter being pre-determined from the results in the former. The rates of both drying and comminution were synergistically increased with increases in inlet air temperature. The static insert was shown to be a more effective comminution device than the glass beads.