An instability analysis has been carried out to elucidate the unsteady flow conditions encountered in the typical circulating fluidized bed units in light of the conveyor-solids feeder interaction. The results successfully predict the critical velocity and the maximum solids circulation rates reported in the literature and explain the origin of such unstable conditions. Furthermore, the simulation, for the first time, reveals the importance of unit structure in improving the performance of circulating fluidized bed systems. Finally, the concept of a high-density circulating fluidized bed is proposed.