During the coal mining process, underground water is generated from the longwall face. In the meantime, the coal cutting process would produce coal particles. Coal slurry is generated in the underground working site, especially for water abundant coal mines. The generated coal slurry is treated to prevent water pollution. Due to the extensively existing of the suspended solid, the traditional process method would often introduce new problems. In this study, laboratory testing was conducted to investigate the characteristics, including the particle size distribution of the coal sludge, coal slurry compositions, slurry viscosity and coal mine water quality. In order to improve the coal slurry treatment efficiency, based on the laboratory results, a novel combined treatment of underground coal slurry is proposed. First, the coarse grained coal slurry is process by a vibrating screening machine. Then, the coal slurry containing fine coal powders is processed through a settling pond. The se