Casing Drilling is an innovative drilling method wherein the well is drilled and cased simultaneously. The small annulus of Casing Drilling can create a controllable dynamic ECD (Equivalent Circulating Density). Casing Drilling technology permits the same desired ECD as conventional drilling to be achieved using a lower, but optimized, flow rate, rheological properties, and mud weight. In this paper, the frictional pressure loss during Casing Drilling operation is evaluated using Computational Fluid Dynamics. Annular pressure losses have received substantial attention in theoretical analyses, laboratory assessment and actual well measurements. Combinations of casing motion, annular eccentricities, wall roughness and fluid temperatures along the length of the annulus affect fluid flow regimes that control annular pressure losses. Current analytical solutions have limited applicability for complex conditions with pipe rotation and eccentricity. In this study, the pressure losses during Casing Drilling operation are investigated using computational fluid dynamics. The results are compared against the available analytical solution and field data. The effect of pipe rotation and eccentricity on the frictional pressure loss is investigated as well. According to the simulation results, the pipe rotation reduces the frictional pressure loss for Yield-Power-law fluid which would be beneficiary during the casing drilling operation. It is found that the pipe eccentricity has a significant effect on the ECD calculation. The industry is moving towards more challenging jobs in narrow pressure window scenarios such as deep-water and HPHT applications. Drilling with casing/liner is among the primary options to complete these sections due to strengthening effects associated with plastering the wellbore wall and also eliminating conventional drill pipe trip. Having accurate models for ECD including the effects of pipe rotation and eccentricity in the narrow annulus is essential to the success of these challenging jobs.