The invention discloses a method for producing liquid fuel by using biomass, and relates to the technical field of clean energy production, the method for producing liquid fuel by using biomass comprises the following steps: step 1, biomass raw material pretreatment, step 2, microbial fermentation, step 3, separation and purification, and step 4, purification. Biomass raw material residues, a microbial fermentation agent, liquid fuel, water, other incombustible micromolecular organic matter liquid and the like are fully fermented in a reaction kettle, and solid impurities and the liquid are separated through simple physical filtering operation; liquid fuel, water and non-combustible organic liquid are still contained in liquid obtained after solid-liquid separation, and then the liquid fuel, the water and the non-combustible organic liquid are separated through comprehensive utilization of physical and chemical separation and purification methods, so that the purity of the liquid fuel is improved, and the problem that the combustion process is insufficient due to the fact that the liquid fuel contains many impurities is solved.