This work investigated the effect of baffles on hydrodynamics and gas-liquid mass transfer in an internal-loop airlift contactor (ALC). It was found that the introduction of baffles reduced liquid circulating velocity in the system. The riser gas holdup in the baffled contactor was found to be higher than the unbaffled, but due to the lower liquid circulation, the use of baffles resulted in a decreased downcomer gas holdup. The overall gas holdup and the rate of gas-liquid mass transfer were not significantly influenced by the presence of the baffles.