The focus of this work is to provide a coal combustion simulation in circulating fluidized bed combustor, which is easy and simple and enhances combustion efficiency, reduces operating and investment costs and air pollutant emissions of different fuels or mixture. Also, research data available on Pakistani coal is quite limited, the objective is to increase local coal utilization by using circulating fluidized bed technology. Computational Fluid Dynamics (CFD) is a robust, easy, cost effective and a comprehensive technique through which complex processes like combustion can be studied. It was finally concluded that the air/oxygen flow rate, coal feed rate, type of coal and particle size of coal have clear impact on the overall combustion characteristics. There is less than 5% error when the results of CFD model were compared with the experimental findings.