The influence of frictional packing limit (FPL) on prediction of hydrodynamics and performance of fluidized bed reactors was studied. Dense gas-solid flows in non-reactive (under isothermal cold and at elevated temperatures) and reactive atmospheres (fluidized bed gasifier) were simulated using Eulerian-Eulerian methodology considering a range of values for FPL. Simulations under cold flow conditions were conducted to establish a range of FPL values that provides physically realistic predictions. It is noticed that bed pressure drop increases with increasing value of FPL when superficial gas velocity (U) is less than or equal to the minimum fluidization velocity. For larger values of U, predicted pressure drop is unaffected by the choice of value of FPL. However, in these cases, the distribution of particles, their velocities and bubbling behavior are significantly affected by FPL. Effect of FPL at elevated temperatures is similar to the one observed at cold flow conditions. It is further noticed that FPL not only affects the predictions on bed hydrodynamics but also has profound influence on reactive flow characteristics such as bed temperature and product gas composition. Sensitivity analysis under cold flow conditions could reveal better predictions when the ratio of FPL to close packing limit is chosen between 0.9 and 0.97.