A modified intal-loop airlift reactor (MIALR) with a continuous slurry phase was studied to investigate the local hydrodynamic characteristics, including gas holdup, bubble size, bubble rise velocity and local mass transfer properties. Based on the analysis of geometrical construction and fluid properties of gas and slurry, MIALR was divided into six flow regions. In these flow regions, the local hydrodynamic characteristics were investigated over a wide range of operating variables. Furthermore, a new method was developed to measure the dissolved oxygen concentration. The volumetric mass-transfer coefficient in six flow regions was also calculated for comparison.