The single phase flow patterns in the annular region of an annular centrifugal extractor (ACE) have been studied both experimentally and computationally. Experiments were conducted using particle image velocimetry (PIV) and laser Doppler velocimetry (LDV) to understand the flow patterns and velocity profiles in both the presence and the absence of the net flow through the annulus. The data obtained in these experiments have been used for the validation of the computational fluid dynamics (CFD) simulations. Further, complete energy balance has been established. The CFD simulations were performed over a wide range of operating conditions. In contrast with the Taylor annular region (having no end effects), the ACE was found to exhibit markedly different cell patterns. The number of cells was found to be strongly dependent on the Taylor number. The effect of the internals such as radial baffles in the annulus, as well as vanes on the bottom plate, on the flow patterns has been investigated. From the simulations it was revealed that the flow patterns in ACE were also dependent on the start-up procedure of the equipment.