As modified three-phase fluidized reactors, loop reactors have been widely used in the area of chemical and energy processes. An external slurry circulation is introduced into a traditional internal loop reactor to improve the transfer between gas and slurry phases. Gas holdup and bubble dynamics are investigated by using the double-sensor conductivity probe technique in the present work. The results show that gas holdup inside the draft tube is greatly affected by the geometrical configuration and is much higher than that in the corresponding section of the annular region. Local, section-averaged, and overall gas holdups increase with increasing superficial gas velocity, while the effects of solid loading and external slurry circulation velocity are less significant than that of superficial gas velocity. Both local bubble size and bubble rise velocity vary significantly in different regions. (C) 2009 Elsevier Ltd. All rights reserved.