Complex hydrodynamic behavior of circulating fluidized beds makes their scale-up very complicated. In particular, large-scale lateral solids segregation causes a complex two-phase flow pattern which influences significantly their performance. Lateral solids segregation has been attributed to direct collisional interactions between particles as well as to interaction between gas-phase eddies and dispersed particles. However, these phenomena have not been investigated thoroughly. This article discusses an advanced 2-D hydrodynamic model developed for circulating fluidized beds based on the two-fluid concept. Because theory to model the interaction between gas-phase eddies and dispersed particles is not available, turbulence was modeled on a macroscopic scale using a modified Prandtl mixing length model. To model the influence of direct particle-particle collisions the kinetic theory for granular flow was applied based on the Chapman-Enskog theory of dense gases. For model validation purposes, a cold flow circulating fluidized bed was employed in which sand was transported with air as fluidizing agent. The column is equipped with pressure transducers to measure the axial pressure profile and with a reflective optical fiber probe to measure the local solids concentration and axial solids velocity. Theoretically calculated solids concentration and axial solids velocity agree satisfactorily with experiment, especially when one realizes that the model contains no adjustable parameters. In general, however, the model slightly underpredicted the experimentally observed lateral solids segregation and yielded a more peaked velocity profile compared to its experimental counterpart.