Coal preparation solid waste, which is a major environmental issue for coal-producing areas in China, may be microbiologically digested and transformed into a product suitable as a soil amendment to increase soil organic matter content and prevent and enhance plant/crop growth. Coal preparation waste collected from a coal sorting plant in Inner Mongolia, China was digested in bioreactors inoculated with microbial enrichments prepared from activated sludge and cow manure. The effluent solids from the coal preparation waste bioreactors were analyzed for their suitability as organic soil amendments, which complied with China standards. Plant growth tests were conducted in sandy soil from a semi-arid region in Colorado, which was amended with the effluent solids. Kentucky bluegrass (Poa pratensis L.) and chives (Allium schoenoprasum) were used as the representative plants for the growth tests, where results indicated substantially higher yields of Kentucky bluegrass and chives for the sandy soils amended with the effluent solids when compared to a commercial organic fertilizer. The number and average length of Kentucky bluegrass shoots were 10 and 5.1 times higher, respectively, in soils amended with the effluent solids. Similarly, the number and average length of chives shoots were 10 and 1.7 times higher, respectively, in soils amended with the effluent solids. Overall, the microbial digestion of coal preparation waste for application as an organic soil amendment is a viable alternative and beneficial use of coal preparation solid waste.