This letter reports on the pronounced turbulence modulations and the accompanying drag reduction observed in a two-way coupled simulation of particle-laden channel flow. The present results support the view that drag reduction can be achieved not only by means of polymeric or fiber additives but also with spherical particles. © 2010 American Institute of Physics. ͓doi:10.1063/1.3478308͔The inevitable pressure loss associated with transport of fluids in pipelines determines the pumping requirements. The pressure loss arises in order to overcome the skin-friction drag. Several investigations of turbulent drag reduction have thus been motivated by the economical benefits of pressureloss reduction. Drag reduction can be achieved in many different ways, for instance, by means of additives suspended into an otherwise Newtonian fluid ͑see, e.g., the reviews by Lumley 1 and Gyr and Bewersdorff 2 ͒. A notable example is the substantial drag reduction observed when flexible polymers are dissolved in the carrier fluid as reported in Refs. 3 and 4 ͑see also the recent reviews 5,6 ͒. However, the findings with respect to drag reduction are not as clear-cut for additives other than polymers and chemicals. Pressure drop measurements reported from a variety of solid-fluid systems were scrutinized by Radin et al. 7 While drag reduction was obtained with fibrous additives ͑e.g., nylon or cotton͒, no drag reduction was reported for nonfibrous additives irrespective of the shape of the solid ͑spherical, platelet, or needle-shaped͒. More recently, drag reduction has been reported from computer experiments by Paschkewitz et al. 8 and Gillissen et al.9 also for rigid fibers. Suspensions of spherical particles in turbulent pipe and channel flows have been extensively studied during the years with the view to better understand the particle transport, dispersion, and segregation in wall-turbulence and also the influence of the presence of the solid spheres on the turbulence of the carrier fluid. The current understanding of the complex behavior of inertial spherical particles in turbulent wall flows was summarized in a keynote lecture by Soldati. 10 The survey of experimental studies and two-way coupled computer simulations by Balachandar and Eaton 11 furthermore addressed the turbulence modulation observed in the presence of inertial particles. In dilute suspensions where particle collisions are of negligible importance, the fluid turbulence may be affected by an enhanced dissipation due to the particles, kinetic energy transfer between the fluid and the particles, and wakes formed in the lee of the solid particles. The relative importance of these mechanisms depends on the particle Reynolds number, the particle-to-fluid density ratio, and the particle-to-turbulence length-scale ratio. By adopting the turbulence intensity as a measure of the turbulence activity, Gore and Crowe 12 showed that a particle diameter of 1/10 the size of the most energetic eddies represents a demarcation between increase and decrease of the carrier-phase tur...