Granular bed filtration is one of the processes under development for separation of fine dust at relatively high temperatures and pressures, for application in coal based combined cycle power plants. Bharat Heavy Electricals Limited (BHEL) have installed a test facility to evaluate the performance of a Circulating Bed Granular Filter (CBGF). Details of the test facility and some of the important test results on the performance of the filter and the on-line granule circulation system are reported in this paper. Work related to the scale-up of the CBGF and the granule circulation system are presently underway.