Combustion and emission behavior of 100 % steam coal (SET 1) and a mixture of 80 % by weight steam coal and 20 % by weight local lignite, characterized by high sulfur and ash contents, (SET 2) were investigated in the 0.3 MW, Middle East Technical University (METU) Atmospheric Bubbling Fluidized Bed Combustor (ABFBC) Test Rig. Experiments were performed with limestone addition at various Ca/S molar ratios with fines recycle. In both sets of experiments, parameters other than Ca/S molar ratio were held as nearly constant as possible. On-line measurements Of O-2, CO2, COx SO2, NOx emissions were carried out. Comparisons between the emissions show that lower NOx and SO2 emissions are obtained from combustion of steam coal/lignite mixture compared to those from steam coal only despite higher sulfur and almost equal nitrogen contents of the mixture. Calculated combustion efficiencies were found to be around 98 and 96 % for SET I and SET 2, respectively. As for the sulfur retention efficiencies, up to three times higher efficiencies were achieved when steam coal is co-fired with high sulfur lignite.