Settling unconverted pitch from a SHC reactor effluent before fractionation improves efficiency of fractionation of slurry hydrocracked products. The recycle of soft pitch to the SHC reactor results in improved reactor operation by avoiding the recycle of lighter products which vaporize in the reactor to occupy reactor space and the recycle of hard pitch which will not convert. The settling step facilitated by mixing with a solvent can achieve a separation between soft pitch and hard pitch not achievable in a fractionation column.