We established a pulsed fluidized bed system to dry and concurrently separate fine lignite (−6 + 3 and −3 + 1 mm lignite). The kinetics and evaporation of lignite moisture were investigated in the pulsed air flow. The variation in the evaporation rate was studied theoretically with respect to temperature, velocity of the pulsed air flow, and pulsed frequency. The rubbing effect between the air and lignite particle probably dominates the evaporation of water. The influence of temperature on the evaporation rate is more significant than that of air velocity by merely considering the effect of air entrainment of the evaporated moisture. Four operational parameters, including inlet temperature, air velocity, pulsating frequency, and bed height, were investigated and optimized through a response surface method to study the interactions between factors and determine the optimal separation conditions. Results indicate that the maximum standard deviation of the ash content of 23.74% was recorded under the optimal condition of the inlet temperature (80 °C), pulsating frequency (3.93 Hz), air velocity (1.09 m/s), and bed height (120 mm) for −6 + 3 mm lignite, and the maximum standard deviation of 24.99% was recorded for −3 + 1 mm lignite under the condition of the inlet temperature (100 °C), pulsating frequency (3.49 Hz), air velocity (0.55 m/s), and bed height (80 mm). The probable error values of separations of −6 + 3 mm lignite and −3 + 1 mm lignite with the pulsed fluidized bed were 0.12–0.16 and 0.10–0.16 g/cm3, respectively, which demonstrates that efficient drying and simultaneous separation of lignite can be achieved with the pulsed fluidized bed.