Recent studies have reaffirmed the utility of spouted beds as potential combustion devices for a variety of fuels : solid, liquid and gaseous fuels (Arbib and Levy, 1982; Weinberg et al., 1988; Zhao et al., 1987; Altwicker et al., 1989; Altwicker and Lin, 1991; Altwicker et al., 1993; Konduri et al., 1994). In this study, the rob of annulus residence time on the performance of such a spouted bed combustor is investigated. The experiments presented here show that fluid hydrodynamics in the annulus of a spouted bed combustor can significantly influence the overall performance; changing the residence time in the annulus significantly affects the concentrations of products due to incomplete combustion at the exit of the combustor. The annular residence time is varied by changing the shape of the bottom of the reactor, by introducing a draft tube and by changing the bed height. propane is used as the fuel and sand as the bed medium. Inferences from the combustion results are supported by pressure and temperature profiles. A streamtube model (Lim and Mathur, 1976) was used to obtain an estimate of the residence time in the annulus. It is concluded that the flame processes taking place at the top of the annulus play a critical role in the emission generation and that more information is needed to understand the annulus-name.