The applicability of a near-infrared reflectance spectroscopic method was tested. The set-up used was constructed for the determination of water during different unit operations performed in a fluidized bed granulator. The granulation of three different formulations and the drying of one pellet formulation were investigated. The pellets were prepared by the continuous extrusion spheronisation technique. It proved possible to measure the moisture content of granules with a standard error of performance of 0.2%. The reference method used was based on the measurement of loss on drying (infrared dryer, wet basis). The applicability of the near-infrared method in pharmaceutical formulation and process development work was investigated using different liquid flow rates and drying end points. Combining the continuous measurement of moisture content and the product temperature measurement creates a novel tool for observing both the granule spraying and the drying phase. Different moisture profiles of the granules were clearly distinguished as well as the different drying end points.