The softening effect of a new type of circulating pellet fluidized bed (CPFB) reactor on groundwater was studied through a full-scale experiment. The operation of the CPFB reactor in the second water plant in Chang’an District in Xi’an China was monitored for one year, and the results were compared with those for the Amsterdam reactor in The Netherlands. The removal efficiency of Ca2+ in the CPFB reactor reached 90%; the removal rate of total hardness was higher than 60%; effluent pH was 9.5–9.8; the turbidity of the effluent and the turbidity after boiling were lower than 1.0 NTU; the unit cost was less than €0.064 per m3; and the softened effluent was stable. The pellets in the CPFB reactor were circulated, providing higher crystallization efficiency. The diameter of the discharged pellets reached between 3–5 mm, and the fluidized area height of the CPFB reactor was 4 m. The performance parameters of the CFPB reactor were optimized.