An improved process for extracting oil from tar sand containing fines using extraction and phase separation techniques. A closed-cycle, single-stage process uses only one extraction vessel in which tar sand is contacted by an extractant, such as water containing a wetting agent and/or a solvent, and recycle water in a fluidized bed condition which avoids disturbing fines attached to the tar sand particles. Fines exiting the extraction vessel in a water phase are agglomerated and reintroduced to the bottom of the extraction vessel where they are filtered out by the extracted sand passing downward in the vessel. The solvent may be vaporized to enhance contact and assure complete recovery. Steam is advantageously introduced to the extraction vessel to scour the sand particles free of solvent. The usual process control additives may be included in the recycle water. The sand and fines tailings are essentially free of pollutants.