The present article describes the basic principles of drying of lignite in a pressurized steam fluidized bed and a test facility of the Chair of Power Plant Technology as well as results achieved during experiments. At first the water binding of lignite, the heat transfer, and the influence of pressure and particle size are explained. A description of the two facilities available at the Chair of Power Plant Technology—cold and hot models—and a presentation of the experiments done and results obtained follows. The construction of a 10 tons/h pilot plant is briefly reported.