In a process for co-production of ammonia and methanol, the outlet stream from the reformer is split into two parts, one of which is subjected to shift, carbon dioxide removal, methanation, compression and ammonia synthesis, while the other part is compressed and fed to a once-through methanol synthesis section. Methanol is withdrawn from the methanol synthesis section, and the remaining effluent from said section is divided into two streams comprising hydrogen, of which one is fed to the shift section, while the other is recycled to the desulfurization unit. This way a favourable co-production method is obtained because recycle hydrogen for the desulfurization is provided, and furthermore a compression step is avoided.