The invention belongs to the field of coal chemical industry and coke gasification, and relates to chemical engineering, chemical technology and chemical equipment technology, and particularly relates to a reaction furnace with fixed bed slag gasification, liquid slag removal and fractional gasification and a technology thereof. The reaction furnace comprises a gasifier furnace, a slag hole, a combustion chamber, a quench chamber and an automatic coke or coal adding machine. The invention provides the novel reaction furnace with the fixed bed slag gasification, liquid slag removal and fractional gasification which utilizes crushed coal (anthracite, bituminous coal and coke) as raw materials, and can operate under normal pressure to 0.09MPa pressure. The reaction furnace can improve the gasification temperature, carbon conversion rate and steam decomposition rate and cold coal efficiency, has a high content of effective gases, relatively simple operation and maintenance, and compact and reliable equipment, is less in investment, small in waste water quantity and safe and environmentally friendly, can convert into relatively clean water gas, and completely realizes localization.