A three-phase slurry reactor has been employed to increase the CO₂ conversion and decrease the selectivity of CO in the direct hydrogenation of CO₂ to hydrocarbons, as it is beneficial for removal of the heat generated due to highly exothermic nature of the reaction. Experiments were conducted over iron-based catalysts (Fe-Cu-K-Al, d_p=45-75 mm) in a slurry reactor. It was found that the slurry reactor is preferable to the fixed bed reactor. The productivity and selectivity of hydrocarbons in the slurry reactor appeared to be better than that in the fixed bed reactor for the hydrogenation of CO₂. The CO₂ conversion was increased with increasing reaction temperature (275-300 ℃), pressure (1-2.5 MPa) or H₂/CO₂ ratio (2-5) in the three-phase slurry reactor. The CO₂ conversion was increased with increasing the amount of CO₂ fed.