Experiments were conducted to identify the necessary conditions for achieving stable operation and identify the operational range of a novel fluidized solids circulation system using a compartmented fluidized bed and vertical transport line (VTL). The VTL has allowed the conveying of relatively fine particles (Group B — near the transition from Group A to B) under a wide range of experimental conditions. It was also demonstrated that the nozzle geometric configuration can alter the entrainment behaviour of the motive gas jet quite significantly by altering the flow patterns in the vicinity of the jet. Of all the geometric modifications studied, the inclined plate and the shroud were shown to have the most favourable impact on the entrainment rate.