Utilizing ammonia as a co-firing fuel to replace amounts of fossil fuel seems a feasible solution to reduce carbon emissions in existing pulverized coal-fired power plants. However, there are some problems needed to be considered when treating ammonia as a fuel, such as low flame stability, low combustion efficiency, and high NOx emission. In this study, the co-firing characteristics of ammonia with pulverized coal are studied in a drop tube furnace with staged combustion strategy. Results showed that staged combustion would play a key role in reducing NOx emissions by reducing the production of char-NOx and fuel(NH3)-NOx simultaneously. Furthermore, the effects of different ammonia co-firing methods on the flue gas properties and unburned carbon contents were compared to achieve both efficient combustion and low NOx emission. It was found that when ammonia was injected into 300 mm downstream under the condition of 20% co-firing, lower NOx emission and unburnt carbon content than those of pure coal combustion can be achieved. This is probably caused by a combined effect of a high local equivalence ratio of NH3/air and the prominent denitration effect of NH3 in the vicinity of the NH3 downstream injection location. In addition, NOx emissions can be kept at approximately the same level as coal combustion when the co-firing ratio is below 30%. And the influence of reaction temperature on NOx emissions is closely associated with the denitration efficiency of the NH3. Almost no ammonia slip has been detected for any injection methods and co-firing ratio in the studied conditions. Thus, it can be confirmed that ammonia can be used as an alternative fuel to realize CO2 reduction without extensive retrofitting works. And the NOx emission can be reduced by producing a locally NH3 flame zone with a high equivalence ratio as well as ensuring adequate residence time.