An internal loop airlift-driven fibrous bed bioreactor (ILALFBB) was designed and developed with a high degree of flexibility to handle genetically engineered and fragile shear-sensitive cells. The mixing and oxygen mass transfer characteristics have been investigated. A cotton fibre was set in the downcomer of the ILALB to represent the fibrous packed bed and the outcome results were compared with those of the polyurethane foam (PUF) packed and unpacked ILALB systems. The effects of fibre, packing height, bed top and bottom clearances, spacing between adjacent fibre surfaces, and superficial gas velocity were investigated. The liquid phase mixing output variables included the liquid circulation velocity (U-Lc), circulation time (t(Lc)), mixing time (t(Lm)), Bodenstein number (Bo(L)), and axial dispersion coefficient (E-L), whereas the mass transfer out variable was the K(L)a. Bo(L) and E-L in the riser and downcomer regions of all packed systems increased with increasing in packing height, packing top clearance, and superficial gas velocity, except the overall Bo(L) was independent of gas velocity at low gas velocities. The Bo(L) was found highest in the riser of the large cotton and small PUF packed system with large spacing and the E-L in the downcomer of PUF packed systems with smaller spacing between fibre surfaces. Increased amounts of packing in the ILALB, whether in the form of cotton or PUF decreased the U-Lc in the bioreactor because of the increased frictional resistance and tortuosity. The reduction in ULc was significant for large packing with smaller spacing between fibre surfaces and increased bottom clearances of the cotton packed system. High circulation times (t(Lc)) and shorter mixing times (t(Lm)) were achieved using small PUF packing with large top clearance. Relatively high KLa values were obtained using large packing with large top clearances and spacing between fibre surfaces. The boost in K(L)a was associated with increased gas holdup and/or interfacial area, due to bubble breakage by the shearing action of the fibrous-bed. Empirical correlation proposed for E-L, Bo(L), and K(L)a gave a good fit of the experimental data.