The hydrodynamics of a cylindrical spouted bed with a draft tube were studied using the two-fluid model (TFM) incorporating the kinetic theory of granular flow. The effect of some essential parameters, namely, particle–wall restitution coefficient (ew), specularity coefficient (φ), and minimum frictional solid volume fraction (αs,min), was examined. Different values of ew and φ were evaluated in the draft tube. The CFD results show that the accuracy of model predictions depends on the proper evaluation of the frictional stress as well as on the values chosen for ew and φ. In particular, model predictions for particle behavior through the draft tube are sensitive to the values of these parameters. A series of CFD simulations for gas–solid flow in spouted beds were performed. Particular attention was given to the solid-phase boundary condition on the draft tube. The model proposed was found to be in close quantitative agreement with the experimental measurements in a wide range of gas flow rates and values of design parameters, such as draft tube diameter and entrainment height.