Experimental investigations have been carried out in Reversed Flow Jet Loop Reactor (RFJLR) to study the influence of liquid flow rate, gas flow rate, immersion height of two-fluid nozzle in reactor and nozzle diameter on gas holdup without circulation, that is, gas-liquid mixture in draft tube only (E-gd) and gas holdup with circulation loop (E-g). Also critical liquid flow rate required for transition from draft tube to circulation loop has been determined. Gas holdup was measured by isolation valve technique. Gas holdup in draft tube and circulation loop increased with increase in liquid flow rate and gas flow rate. It is observed that the increased flow rate is required for achieving a particular value of gas holdup with larger nozzle diameter. Nozzle at the top edge of draft tube have higher gas holdup as compared to other positions. It has been noted that, no significant recirculation of gas bubbles into the top of draft tube from annulus section has been observed till a particular liquid flow rate is reached. A plot of gas holdup with no circulation and with circulation mode determines minimum liquid flow rate required to achieve complete circulation loop. Critical liquid flow rate required to achieve complete circulation loop increases with increase in gas flow rate and is minimum at lowest immersion height of two-fluid nozzle.