A three-dimensional simulation of a dilute phase riser reactor (solid mass flux: 2 kg m(-2) s(-1)) is performed using a novel density based solution algorithm. The model equations consisting of continuity, momentum, energy and species balances for both phases, are formulated following the Eulerian-Eulerian approach. The kinetic theory of granular flow is applied. The gas phase turbulence is accounted for via a k-epsilon model. An extra transport equation describes the correlation between the gas and solid phase fluctuating motion. The solution algorithm allows a simultaneous integration of all the model equations in contrast to the sequential multi-loop solution in the conventional pressure based algorithms, used so far in riser simulations. The simulations show an unsteady behaviour of the flow, but a core-annulus flow pattern emerges on a time-averaged basis. The abrupt nature of the T type outlets causes a significant recirculation of gas and solid from the top of the riser. The flow near the outlets is highly non-symmetric and has a three-dimensional character. A significant decrease of the gas phase turbulence and particle granular temperature across the riser length is attributed to the presence of small particles, which is qualitatively consistent with the experimental data from literature. (C) 2003 Elsevier Ltd. All rights reserved.