In our previous work, a new concept of annular catalyst cooler (ACC) was recently proposed and validated experimentally, which showed that an internal circulation of solids can be formed by using two gas distributors and both hydrodynamics and heat transfer can be largely improved. The current work simulated the detailed hydrodynamics of gas-solids flow to advance our understanding of the ACC by using the two-fluid model.. The influence of effective particle diameter dp * and specularity coefficient in solids wall boundary condition are examined and compared with experimental data. Optimum values of dp * =170 m and =0.3 are determined and used in the simulations. The results show that by properly selecting the gas velocities and the position of heat transfer tube, internal solids circulation can be formed. TheACC has a combined hydrodynamic feature of up-and down-flow catalyst coolers with bigger solids volume fraction and smaller particle resident time, which are beneficial for improving heat transfer coefficients. Detailed hydrodynamics of gas-solids flow are obtained, and the influential parameters are examined, which provides valuable information on the design and optimization of such new ACCs.