A new fluidized bed heat exchanger for exhaust gas heat recovery is do-veloped. Compared to the existing ones, the present heat exchanger system is featured by the particle fluidization method which does not depend on conventionally used baffle plate with holes and by the multiple downcomer tubes to extract heat energy from hot particles during the time particles moves down to be fed again to the hot gas line. Particles are introduced to the main hot gas stream alongside the pipe circumference. The heat exchanger performance and pressure drop are evaluated through experiments for the present gas-to-water heat exchanger system.