This study focused on the vibrating fluidized-bed-type powder feeder used in HVAF thermal spraying equipment. This feeder has been used in thermal spraying equipment and industrial applications. However, particulate materials’ flow mechanism and stable transport characteristics have not been fully understood. This study experimentally investigated the fluidization characteristics, powder dispersion state, and powder transportation characteristics of Al2O3 particles during vertical vibration fluidization. The material used was Al2O3 particles of 2.9 μm and 3808 kg/m3, classified as the group C particles in the Geldart diagram. As experimental conditions, the fluidized air velocity to the bottom of the powder bed and the vibration intensity in the vertical direction changed. The critical fluidization air velocity was defined to evaluate the generating powder flow by vertical vibrating fluidization. As a result, good fluidization of the powder bed of Al2O3 was obtained by the vertical vibration, as well as an airflow that was higher than the critical fluidization air velocity. Regarding powder transportation characteristics, it was clarified that the fluidized air velocity at the bottom of the powder dispersion vessel and the pressure difference from the powder dispersion vessel to the transportation part significantly affect the mass flow rate.