At present, the research on aquathermolysis catalysts mainly focuses on the catalytic effect of external catalysts on the reaction, ignoring the fact that external catalysts will form complexes with in situ inorganic minerals after entering the reservoir. In this paper, we investigated the effects of transition metal complexes as external catalysts and bentonite as in situ catalysts on aquathermolysis, respectively. Meanwhile, the aquathermolysis reaction co-catalyzed by external and in situ catalysts was further investigated. The results show that the transition metal complexes exhibited good co-catalysis with bentonite. The viscosity reduction rate can reach 73.47% at 200 °C and 4 h with 0.1 wt.% of catalyst (NAD–Zn) addition. The addition of ethanol under the same reaction conditions will further increase the viscosity reduction rate to 84.59%. The results of thermogravimetric analysis, component analysis and boiling range analysis of heavy oil show that the heavy components in heavy oil are cracked into light components after the aquathermolysis. The results of elemental analysis show that the heteroatoms in the heavy oil were removed and the quality of the crude oil was improved. The results of GC–MS analysis of the model compounds showed that the process of aquathermolysis was mainly through the cleavage of C–C, C–N and C–S bonds to crack the macromolecules into small molecules, and then achieve the effect of viscosity reduction. The main mechanism of catalyst action is the acidic center on the surface of the bentonite and the coordination bonds formed by the transition metal complexes with the heteroatoms.