Numerical investigations on air staging and fuel staging were carried out with a newly designed coaxial cyclone combustor, which uses the method of two stage coal combustion composed of pre-combustor and main combustor. The pre-combustor with a high air/fuel ratio is designed to supply gas at high temperature to the main combustor. To avoid local high temperature region in this process, secondary air is injected in the downstream. Together with the burned gas supplied from the pre-combustor and the preheated air directly injected into main combustor, coals supplied through the main burner react rapidly at a low air/fuel ratio. Strong swirling motion of cyclone combustor keeps the wall temperature high, which makes slagging combustion possible. Alaska, US coal is used for calculations. Predictions were made for various coal flow rates in the main combustor for fuel staging and for the various flow rate of secondary air in the pre-combustor for air staging. In-scattering angles are also chosen as a variable to increase residence times of coal particles. Temperature fields and particle trajectories for various conditions are described. Predicted temperature variations at the wall of the combustor are compared with corresponding experimental data and show a similar trend. The in-scattering angle of 20° is recommended to increase the combustion efficiency in the main chamber.