Combustion performance of an internally cycloned circulating fluidized bed for paper sludge was discussed through a series of batch type experiments. Operation parameters such as water content, feeding mass of sludge and secondary air injection rate were varied to find out the effect on the combustion performance, which was examined with carbon conversion rate and pollutant emission such as CO and NOx. A conventional solid fuel reaction was observed in the experiments of varying water content and feeding mass of the sludge, which is characterized with kinetic limited reaction zone, diffusion limited reaction zone and transition zone. Secondary air injection with swirl enhances the mixing of the gas phase as well as the solid phase, and improves combustion efficiency accompanied with higher carbon conversion rate and lower pollutant emission rate.