The objective of the present study was to design, fabricate and evaluate the performance of a novel airinducing impeller system with a specially designed air-inducing tube-set. The novel air-inducing impeller system, when attached to a conventional baffled agitated vessel, could convert it into an air-inducing reactor. Water was used as the working fluid and the characteristics of the impeller system such as critical speed, power consumption and gas holdup were investigated by varying the gas free liquid level, orifice immersion depth, bottom clearance and impeller speed. Results showed that this novel air-inducing impeller system induced the air at speeds lower than the critical speeds reported by most of the investigators in the literature.