This study investigates and compares the efficacy of conventional thermal pyrolysis and microwave (MW) plasma pyrolysis in upgrading coal-derived precursors. Coal samples presenting a range of ranks were pyrolyzed under various reactive and nonreactive atmospheres using a pyroprobe, with the pyrolyzates analyzed by gas chromatography-mass spectrometry (GC-MS). Comparative MW plasma tests were conducted using a modified countertop MW unit, with condensed products similarly analyzed by GC-MS. A predominant coal devolatilization product-benzene was selected for analyzing the reactive MW plasma upgradation. Results demonstrate that conventional thermal pyrolysis lacks effectiveness in upgrading the precursors. To gain insight into the underlying reasons, chemical kinetic simulations were conducted. Oppositely, reactive MW plasma pyrolysis demonstrated remarkable precursor upgradation. These condensed MW plasma pyrolysis products were then subjected to a carbonization and graphitization heat-treatment with a comprehensive graphitic quality assessment conducted using X-ray diffraction and transmission electron microscopy. After graphitization, the MW plasma-upgraded precursor produced a carbon with a crystallite size several times greater than that of the initial benzene. By MW plasma processing, the poorly graphitizable benzene precursor was transformed into a highly graphitizable precursor comparable to coal tar pitch. The underlying reasons for this significant improvement were investigated by analyzing the compositional changes in the precursor under various reactive environments.