The invention relates to the field of bioenergy, in particular to a method for producing light oil through liquefaction of biomass. Specific preparation steps of a biomass slurry are as follows: sequentially drying, primarily pulverizing, compressing and secondarily pulverizing straw, then mixing with a hydrogenation catalyst and a vulcanizing agent to obtain a mixture, adding the mixture into a solvent oil, grinding and slurrying to obtain the biomass slurry with the straw concentration of 30-60wt%. By an innovative technology of treating the straw through compression first and then secondarypulverization, through the compression of the biomass, the loose straw is rearranged, mechanically denaturated, shaped and fluidized and the like, so that the density and the specific gravity of thestraw are increased, dispersion of the straw in an oil product is facilitated, the content thereof in the oil product can be increased, the concentration of a reaction material is increased, the amount of the biomass delivered by a pump per unit time is increased, smooth operation and delivery of the pump are guaranteed, and the yield of the light oil is increased.