After performing a series of batch type experiments using a lab-scale combustor, consideration was given to the use of an internally cycloned circulating fluidized bed combustor (ICCFBC) for a paper mill sludge. Operation parameters including water content, feeding mass of the sludge, and secondary air injection ratio were varied to understand their effects on combustion performance, which was examined in terms of carbon conversion rate (CCR) and the emission rates of CO, C(x)H(y) and NO(x). The combustion of paper mill sludge in the ICCFBC was compared to the reaction mechanisms of a conventional solid fuel combustion, characterized by kinetics limited reaction zone, diffusion limited reaction zone, and transition zone. The results of the parametric study showed that a 35% water content and 60 g feeding mass generated the best condition for combustion. Meanwhile, areal mass burning rate, which is an important design and operation parameter at an industrial scale plant, was estimated by a conceptual equation. The areal mass burning rate corresponding to the best combustion condition was approximately 400 kg/hm(2) for 35% water content. The secondary air injection generating swirling flow enhanced the mixing between the gas phase components as well as the solid phase components, and improved the combustion efficiency by increasing the carbon conversion rate and reducing pollutant emissions.