This is the first study to optimize the hydrodynamics of a Plasma Lift Reactor (PLR). A PLR is designed to break down organic contaminants in aqueous solutions. Original experimental results are presented for both water-air tests, and for plasma degradation of organic contaminants in Bayer liquor. In addition, a multiphase Computational Fluid Dynamics model has been developed, which predicts the hydrodynamic behaviour in the PLR. Results suggest the PLR is most effective at high liquid recirculation rates that occur with a long (568 mm) draft tube, moderate spacing (25.4 mm) between the draft tube and reactor base, and with a gas flow rate of a superficial velocity of 0.3m/s. Other parameters such as reactor fill volume were insignificant.