A gasification system and a method for gasifying a particulate carbonaceous fuel are disclosed. The gasification system has a gasification chamber with an upper section and a lower section with a fuel inlet for injecting a particulate carbonaceous fuel and oxidant into the upper section whereby, in a thermo-chemical reaction, synthesis gas and residual char is generated. The gasification system further includes a separator configured to receive the synthesis gas and to separate residual tar form the synthesis gas. Further, there is a char bed disposed in the lower section formed by residual char generated in the thermo-chemical reaction and a gas-inlet at a bottom portion of the lower section for injecting gas into the char bed. The residual tar is injected into the char bed whereby, in a thermal cracking process, the residual tar is converted into synthesis gas. Hereby, it is possible to utilize the otherwise lost energy contained in the residual tar, and thereby achieve better efficiency in a gasification system, in a cost-effective and simple manner.