In order to successfully integrate biomass pyrolysis oils as starting materials for conventional oil refineries, upgrading of the pyrolysis oils is needed to achieve desired properties, something which can be performed either as part of the pyrolysis process and/or by separate catalytic treatment of the pyrolysis intermediate oil products. In this study, the quality of stem wood-derived pyrolysis oil was improved via ex situ catalytic hydropyrolysis in a bench-scale pyrolyzer (stage 1), followed by catalytic hydro-coprocessing with fossil co-feed in a laboratory-scale high pressure autoclave (stage 2). The effect of pyrolysis upgrading conditions was investigated based on the quality of intermediate products and their suitability for hydro-coprocessing. HZSM-5 and Pt/TiO2 catalysts (400 °C, atmospheric pressure) were employed for ex situ pyrolysis, and the NiMoS/Al2O3 catalyst (330 °C, 100 bar H2 initial pressure) was used for hydro-coprocessing of the pyrolysis oil. The application of HZSM-5 in the pyrolysis of stem wood under a N2 atmosphere decreased the formation of acids, ketones, aldehydes, and furans and increased the production of aromatic hydrocarbons and phenolics (guaiacols and phenols). Replacing HZSM-5 with Pt/TiO2 and N2 with H2 resulted in complete conversion of guaiacols and significant production of phenols, with further indications of increased stability and reduced coking tendencies.