The invention discloses a tunnel pipe thin-layer retort for coal and oil shale and a retort process thereof, relates to a retort and a process for producing coal tar and shale oil, and solves the problems that the conventional retorts and processes have large heat loss at semicoke cooling sections, the retort time is difficultly controlled accurately, the oil yield is low and the treatment capacity of the single furnace is small. The retort comprises a drying section, a retort section, a high temperature cooling section and a low temperature cooling section, wherein the semicoke cooling section is divided into two sections by a roller feeding machine, heat exchange of cooling wind is carried out at the high temperature semicoke section, the low temperature cooling section is communicated with a tunnel pipe, and drying gas enters the drying section via the tunnel pipe. According to the process, retort oil gas led out from a retort oil gas outlet of a retort furnace is purified and then used as circulation retort gas, and gas led out from a drying gas outlet of the retort furnace is used as the circulation drying gas to carry out retort. With the retort and the retort process, an addition of 20 percent of semicoke residual heat is recovered from per ton raw material, the retort time is accurately controlled, the oil yield is high, and the treatment amount of the single furnace is large; and the retort and the retort process are mainly applied to the field of coal chemical industry.