NOVELTY - A dual function catalyst system comprises matrix, a densifier and a catalytically active material, where the catalyst system has a specific combined mesoporous and macroporous surface area of 1-100 m2/g.    USE - As a dual function catalyst system used in thermolysis and catalytic cracking of biomass material (claimed).    ADVANTAGE - The system converts solid biomass materials to liquid reaction products having a high oil yield and having low oxygen content, while reducing the risk of over-cracking the biomass feedstock and the bio-oil and bio-oil vapors; and is low cost system. The process converts solid biomass materials to liquid fuels as a way to reduce mankind's dependence on fossil fuel, to increase the use of renewable energy sources, and to reduce the build-up of carbon dioxide in the earth's atmosphere. The system has optimal dual-functionality, and optimal physico-chemical properties, such that the system provides efficiently heat to the biomass in the first-stage reactor while minimizing the sorbing or trapping of oil vapors when present in the first-stage reactor, and such that the system exhibits a selective catalytic activity in cracking bio-oil vapors when present in the second-stage reactor. Such catalyst system allows for the optimization of the production of oil yield with the minimum amount of oxygen, coke and light gases (CO, CO2, H2O and H2).    DETAILED DESCRIPTION - INDEPENDENT CLAIMS are included for the following:    (1) making (M1) a dual function catalyst system used in conversion of biomass material involving preparing a slurry containing matrix, a densifier and optionally a binder; shaping the slurry into shaped bodies; and subjecting the shaped bodies to calcination at 500-1000 degrees C, where the dual function catalyst system has a specific combined mesoporous and macroporous surface area of 1-100 m2/g; and    (2) converting (M2) solid particulate biomass material involving providing the solid particulate biomass in a reactor; thermally pyrolyzing at least a portion of the solid particulate biomass in presence of a catalyst system to form primary reactions products within a first zone of the reactor; and catalytically converting at least a portion of the primary reaction products into secondary reaction products in the presence of the catalytic system within a second zone of the reactor, where the catalytic system has a specific combined mesoporous and macroporous surface area of 1-100 m2/g.