A process for the production of high yields of high quality products from heavy hydrocarbonaceous feedstock is provided comprising a two-stage, close-coupled process, wherein the first stage comprises a thermal-catalytic zone into which is introduced a mixture comprising the feedstock, coal, dispersed catalyst, and hydrogen; and the second, close-coupled stage comprises a catalytic-hydrotreating zone into which substantially all the effluent from the first stage is directly passed and processed under hydrotreating conditions.