The conversion of coal into cleaner energy forms is essential for achieving sustainable development. This study investigates the role of Fe2O3 as a catalyst in enhancing the efficiency of coal pyrolysis and char combustion. A fixed-bed tube furnace (TF) was selected for pyrolysis, and a Thermogravimetric Analyzer coupled with Fourier Transform Infrared Spectroscopy (TG-FTIR) was used for combustion analysis. The produced syngas and tar were characterized using Gas Chromatography (GC) and Gas Chromatography-Mass Spectrometry (GC/MS). Our results show higher volatile release volume (VRV) from coal with catalyst compared with without catalyst and the rise with temperature within the 600–1000 ℃ range. Although hydrogen production decreased with the addition of the catalyst, at 1000 ℃, the catalyst's impact was negligible. The catalyst notably facilitated the breakdown of heavy aromatic rings in tar, eliminating triple-bond aromatic structures. In contrast, tar from raw coal exhibited a 20% yield of such structures. Scanning Electron Microscopy (SEM) revealed a cubic structure of Fe2O3 in char, with an increased surface area compared to raw coal char (338.75 m2/g vs. 313.51 m2/g). TG-FTIR analysis indicated a lower activation energy for catalysts with char combustion. Overall, Fe2O3 improves tar structure, increases char surface area, and lowers activation energy.