The biomass productivity of microalgae cells mainly depends on the hydrodynamics of airlift bioreactor (ABR). Thus, the hydrodynamics of concentric tube ABR was initially studied using two-phase three-dimensional CFD simulations with the Eulerian-Lagrangian approach. The performance of ABR (17 L) was examined for different configurations of the draft tube using various drag models such as Grace, Ishii-Zuber, and Schiller-Naumann. The gas holdups in the riser and the downcomer were well predicted using E-L approach. This work was further extended to study the dispersion of microalgae cells in the ABR using three-phase CFD simulations. In this model (combined E-E and E-L), the solid phase (microalgae cells) was dispersed into the continuous liquid phase (water), while the gas phase (air bubbles) was modeled as a particle transport fluid. The effect of non-drag forces such as virtual mass and lift forces was also considered. Flow regimes were explained on the basis of the relative gas holdup distribution in the riser and the downcomer. The microalgae cells were found in suspension for the superficial gas velocities of 0.02-0.04 m s experiencing an average shear of 23.52-44.56 s which is far below the critical limit of cell damage.