Hydrodynamics and mass transfer characteristics of a three-phase airlift reactor were studied in a rectangular split-vessel reactor and using an air-seawater-marine sediment system. Experiments were conducted over a range of downcomer to riser cross-sectional area ratios (A(D)/A(R) = 0.65 to 1.0) for two-phase systems and for five sediment concentrations (5 to 25% w/v) using marine sediments. The influence of higher sediment concentrations (30 to 50% w/v) was examined for A(D)/A(R) = 1. The presence of fine sediment particles in the system had little effect on hydrodynamic and mass transfer parameters compared to the two-phase systems up to 25% loading, decreasing at higher loadings. The airlift reactor was found to meet the dissolved oxygen demand needed For a contaminated sediment treatment process. Axial distribution of the particles was uniform along the riser and the downcomer. Correlations were developed that described the hydrodynamic and mass transfer behaviour for all experimental conditions examined.